Morning Report Friday 23 January 2015
Central banks are clearly winning the battle, the war has much further to run!
The market has voted very positively to the ECB stimulus plans overnight with the Dow up over 250 points while I am typing. The ECB have announced they intend to buy 60 billion euros a month of securities until 2016 as they try and stave off deflation and pick up the flagging European economies. This move is in line with recent interest rate cuts by Canada, Denmark, Turkey, India and even Peru – clearly to keep my son Harry’s current favourite character, Paddington Bear happy. Markets are simple beasts and they focus on different issues at different times, currently its cheap money for longer and ignoring the lack of economic recovery, outside of America, in over 5 years since the GFC.
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