Equities Jump Sharply Thanks To Two Assists

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[Chart courtesy of MarketWatch.com] 1. Moving the Markets The major indexes got two assists today, which propelled the markets out of the trading range with the S&P 500 making another assault at the 2,000 level after having been stuck below it for the past 1-1/2 weeks. China’s central bank got things started by announcing a boost in its stimulus measures …

One Man’s Opinion: Will The ECB’s Surprise Interest Rate Cuts Be Followed By QE?

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European Central Bank President Mario Draghi surprised markets by announcing cuts in all the three main interest rates after inflation weakened further to a 0.3 percent annual rate in the euro area. A full-fledged quantitative easing might be unveiled after starting off with asset-backed securities – what Draghi calls “simple transparent ones,” said Kit Juckes, Global Strategist at Societe Generale. …

One Man’s Opinion: Will The European Central Bank Be Forced Into QE Next Year?

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The European Central Bank is likely to include in their Stress Test the money that commercial banks have raised and the fines they have incurred, said Erik Britton, director at Fathom Consulting. The eurozone final inflation reading for June came in at 0.5 percent, matching an initial estimate. Asked if investors should take heart since price levels are not falling, …

One Man’s Opinion: Will The European Central Bank Initiate Quantitative Easing In June?

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The Purchasing Managers Index numbers in the 18-member euro zone were disappointing but were equally consistent with an annual growth forecast of about 1.5 percent, which, if achieved, would be great in what has been witnessed in the euro land generally, said James Bevan, Chief Investment Officer at CCLA Investment Management. It is likely that the euro-area will witness a …

One Man’s Opinion: Is The European Central Bank Likely To Cut Refinance Rates In June While Refraining From QE?

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The eurozone grew in the first quarter despite no mending of balance-sheets at the macro-level and stagnation in France and the Netherlands, said David Owen, Chief European Economist at Jefferies International.  The building blocks for a sustainable and strong-based recovery were not simply there. Inflation in May is likely to print at or below 0.5 percent, which will put pressure …