Morning Report Friday 4 December 2015
What now that the ECB has disappointed equity markets?
In the middle of the night the ECB (European Central Bank) announced it's much-anticipated increase to economic stimulus. Mario Draghi announced measures that quite clearly disappointed markets sending the Dow down 300 points at 7.30am AEST and the Euro soaring. In hindsight, a classic "buy on rumour sell on fact" situation as the market has clearly been complacent due to the ECB's aggression in the past.
Basically, the ECB cut its deposit rate to -0.3% (yes minus!) and extended the QE programme but this was minimum touted by economists over the last week.
The ASX200 is looking to open around 5160 this morning, down ~70 points in reaction to the plunge by overseas equities and potentially making fresh lows for December - see chart 2.
Show more...
