Markets are gearing themselves up for the ECB’s decision this afternoon, although given the crashing let-down from Mark Carney last week this time round most investors are not looking to get too excited.
Nonetheless the relatively shallow pullback seen in eurozone markets this morning would seem to indicate a calm atmosphere – given the myriad problems facing the eurozone, and indeed the UK and EU, it seems highly likely that Mario Draghi will seek to soothe frayed nerves with a generally dovish statement.
In other central bank news BoJ governor Kuroda has dashed the hopes of those looking for ‘helicopter money’, a fact that could start to hit the hitherto strong move higher in the dollar-yen cross. Should this start to fall, we could see stock markets start to take a hit as well, as the USDJPY pair is usually taken as one of the handiest guides as to the strength of global risk appetite.
Another strong finish overnight for US markets is an indication of how keen investors are to keep pushing stocks higher, as earnings season provides enough positive fuel for the rally.
With so much of the global investment community fatigued by Brexit, earnings season has come at just the right time to distract investors. With cash levels at fund managers still remarkably strong, there is hope that more might be tempted to join in the overall move higher in US stocks.
Ahead of the open, we expect the Dow to start at 18,572, down 23 points from last night’s close.
The post Helicopters will not be used appeared first on Every Investor.