German Companies Pull Ads From Breitbart

German carmaker BMW, the restaurant chain Vapiano, supermarket chain Rewe, and Deutsche Telekom have all pulled their ads from Breitbart site due to concerns about the website's content: "The positions held by contrast with Vapiano's values, such as openness and tolerance," said the restaurant chain.

Something's Wrong

Yesterday, as we noted, saw VIX and stocks rise together (an unusual event). Today that trend is even more pronounced and the market action is very 'odd' post-ECB. Lot of chatter on huge option gamma forcing market-makers to chase moves...

Art Cashin Explains Yesterday's Furious Rally

"Just before the buy programs kicked in, the rally in the Dow Transports was shifting up a gear as the index was on the verge of punching through to a new record high. If the Transports made a new record high, it would confirm the record high in the Industrials, thus giving a Dow Theory buy signal. As that realization spread, the algorithms kicked in with buy program after buy program and the race was on."

The Globalization Genie's Long Left The Bottle

Empty labels, fake news and oceans of debt keep the systems - somewhat - going for now. But the genie’s long left the bottle. The ‘incumbents’ have failed their people for far too long, most of all economically. And they keep on claiming that everything will be alright, everyone will be better off if only we execute more globalization, and give them all a few pennies more.

Wall Street Responds To Mario Draghi's "Big Shock"

The European Central Bank’s decision to taper bond purchases is a shot in the arm for the euro, analysts say, and as Bloomberg reports, while policy makers say they may still expand the size or duration of quantitative easing, investors may be inclined to be skeptical.

Mario Draghi Explains His Dovish Taper (Hawkish Easing) - ECB Press Conference Live Feed

In a surprise for markets, Mario Draghi gave (extended QE) and took away (tapered purchases) the punchbowl in what we are sure will be described as 'significant additional easing' even though bond traders are clearly disappointed. Having had 45 minutes to judge the market's reaction (steeper curves, lower EUR, higher bank stocks), we wonder what tape-bomb he will drop during the Q&A to spoil the party.

European Bond Yields Spike, Bank Stocks Soar, EUR Tumbles After Draghi Surprise

Having rallied into today's ECB meeting on hopes of geting more "whatever it takes" from Mario Draghi, his surprising tilt to the hawkish taper has sparked selling across European bond markets (pushing Bund yields to 11-month highs). EURUSD kneejerked higher on the statement but faded back quickly. Yield curves across Europe are also steepening dramatically and bank stocks are loving it.

ECB Stuns Markets, Announces Tapering Of Bond Purchases To €60 Billion

"From April 2017, the net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim."

Draghi’s Risk Is He Speaks And No One Listens

There are going to be two outcomes today stemming from the ECB meeting. We’ll learn what President Draghi has to say. And then what the market wants to hear. Not in terms of expectations, a la analyst previews, versus actual comments. But how portfolio managers choose to interpret his answers, no matter what he says. And it makes his task all the more tricky.

Frontrunning: December 8

  • Draghi Expected to Lay Out Plans for More ECB Stimulus (WSJ)
  • Bonds Fall as Investors Turn Wary on ECB Stimulus; Euro Gains (BBG)
  • European Stock Traders Look to Draghi to Break Santa Curse  (BBG)
  • Trump to nominate Pruitt to lead U.S. environmental agency (Reuters)
  • Trump's choice of China envoy a positive sign for ties, Xinhua says (Reuters)
  • Syrian Rebels Pin Hopes on Trump (WSJ)

What Time Will The ECB Tip Its Hand

With traders' fingers poised over the buy (and to a lesser extent) the sell button, waiting for the ECB to lay out the mechanics of its QE extension with or without tapering, the question is what time is more important: the 1:45pm CET (7:45am ET) statement release or the 2:30pm CET press conference. Courtesy of Bloomberg here are some thoughts on which time will be more relevant. 

Global Equity Euphoria Prepares To Meet Mario Draghi

There’s seemingly no stopping the equity side of the “Trumpflation” trade in what may be developing into an epic year end blow-off top. The euphoria which took the S&P 500, Russell 2000 and the Transports to all-time highs yesterday, and the Dow to less than 500 points away from 20,000 carried over into Asian stocks (+0.8%) as they followed bullish trend, while European stocks rose for a fourth day.