Scandal Erupts At Euro Summit Over Scotland, While Draghi Says In "No Rush" To Ease Policy

For all the expectation of an imminent central bank intervention over the past two days, something which according to Bloomberg was the main catalyst for the stock surge since Monday, so far the world's money printers have been dead silent: not only is the BOJ trapped and unable to intervene with virtually its entire bond curve trading below 0% (and any further easing will only push it lower), but moments ago the ECB itself chimed in and shot down hopes of more stimulus from Frankfurt when Mario Draghi said moments ago that the ECB is in "no rush" to ease policy after the Brexit vote.

But even more notable, and confirming just how profound the chaos in Europe is in the post-Brexit world, was the mini scandal that just erupted at the EU summit, now sans Cameron, over the fate of Scotland. Here, in an attempt to anger the UK some more, EU commission president Jean-Claude Juncker, in comments to reporters, said that “Scotland won the right to be heard in Brussels." This takes place just hours before Scottish First Minister Nicola Sturgeon is due to meet with Juncker later Wednesday

But while Juncker's statement was meant to merely infuriate the UK even more, what he did instead is open a new Pandora's box, one which invites all secessionist movements in Europe to demand a comparable treatment.

And, sure enough, just moments later, Spain's PM Rajoy immediately said that he opposes any negotiation by Scotland with the EU adding that "If the UK leaves, Scotland leaves."

Why the abrupt response? Because Rajoy knows that is Scotland will be heard - and allowed to become independent - then Catalonia and the Basque Country are next.

What happens next? Nobody has any idea. This is what we said moments ago:

Just remember: buy stocks because it is month end, and because central banks which now explained they will not be intervening (unless stocks drop much further) may intervene.