Month: September 2016

US Futures, Bonds Rise, Dollar Dips As Fed, BOJ Meetings Begin

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US Futures, Bonds Rise, Dollar Dips As Fed, BOJ Meetings Begin

If yesterday one could “explain” the overnight stock levitation due to the move higher in crude oil, today there is no such catalyst with WTI down modestly, and yet the broader push higher across European stocks and US equities has reappeared following yesterday’s muted close on Wall Street ahead of key central bank data on deck. Some have attributed the 0.4% rise in futures to the latest dip in the dollar, while a modest bond rally as the countdown to crucial policy decisions by the Bank of Japan and the…

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What Wall Street Expects From The ECB, And How Will The Market React

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What Wall Street Expects From The ECB, And How Will The Market React

While there have been various trial balloons in recent days, hinting that the ECB could start purchasing equities, most notably by the Peterson Insitute, it is unlikely that Mario Draghi will commence outright monetization of ETFs at the ECB’s meeting tomorrow. Still, that does not change the fact that the ECB is rapidly running out of bond to government monetize, which has pushed government yields to all time negative lows, and has so distorted the corporate market that non-backstopped corporations have issued negative yielding bonds: an unheard of event. On…

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