Monetary Policy

Euro Spikes On Upbeat Draghi Comments, Then Drops On Muted Inflation Outlook

Well that didn't last long:moments after the EUR spiked on Draghi's upbeat economic comments, it has since filled the entire gap and is back to session lows after Draghi talked down Eurozone inflation saying there is no sufficient evidence to alter inflation outlook, and no evidence of a self-sustaining inflation move.

Mario Draghi's "Why More QE Is Possible But Everything's Awesome" ECB Press Conference - Live Feed

Despite cherry-picked indications (and exultations) that everything is awesome in Europe's economies (and central banks were united to rescue the world in case of a Le Pen victory), Mario Draghi decided to offer the at-record-high markets another bowl of potential punch bystating that if things got "less favorable" the ECB would increase/extend QE. We look forward to hearing his 'balanced' reasoning.

TDB's picture

There is an old saying that one should never talk about politics or religion. I think that is just a way to make sure people don’t talk about anything productive or eye opening.

And I think it is basically the same attitude that makes the New York Times tell us not to “politicize the Federal Reserve.”

Neil Ty - The Scientism Guy

Neil deGrasse Tyson has released a new video to call out the obstinate, ignorant voters who deny what many regard as certain truths handed to them by a body of elite, trustworthy scientists. Yet Tyson and the marchers border on an equally dangerous view: scientism.

World Stocks Hit All Time High, S&P Futures Rise To Within 1% Of Record

World stocks hit a new record high on Tuesday, with investors still cheering Macron's victory in the first round of the French presidential election, supported by speculation about U.S. tax reform and the overnight report that Trump has conceded on the border wall, eliminating a government shutdown as a potential risk.

Is The Fed About To Drop The MOAB On Wall Street?

What all this warrants is extreme caution in Bubbleville. With geopolitical risk flashing bright red, half percent GDP growth, record high equity valuations and a delusional Fed that continues threatening interest rate normalization; the market’s reality check is surely imminent.

China Threatens Retaliation To Trump's Steel "Protectionism"

"If the U.S. does take protectionist measures, then other countries are likely to take justifiable retaliatory actions against U.S. companies that have an advantage ... in fields such as finance and high-tech, leading to a tit-for-tat trade war that benefits no one," the official China Daily said in an editorial on Monday warning it would retaliate to any protectionism unleashed by the Trump administration.

Seven Charts For Bullish Investors To Ignore

Wall Street still exudes widespread optimism that 2017 will provide another year of solid gains for stocks amid stable albeit unspectacular economic growth and only gentle interest rate rises. However, as The FT details, all is not well in reality, and the following seven charts will hearten investors of a more bearish persuasion...

How The Euro Will React After The First French Results Come Out

With the French voting stations open until 7pm, and the first exit polls due just after 8pm, here is a simple matrix predicting how the Euro will respond once the results start trickling in, together with event probabilities, according Citi.