Thursday 5 June 2014

Pre-market Brief

Good morning...and for those in the EU...welcome to NIRP (negative interest rate policy).  Futures are a little higher, sp +3pts, we're set to open at 1930. Metals are flat. Market is awaiting an ECB press conf. at 8.30 EST.


sp'daily5


Summary

*so far today..

Draghi has announced...

Deposit rate:  lowerered from 0.00 to -0.1%

From what I gather, that is the rate the ECB will charge banks for holding money.

Benchmark rate: lowerered from 0.25% to 0.15% - the headline interest rate.
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There are rumours of a QE program...but...I await the press conference at 8.30am EST.
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Update from the Permabull



Naturally, Oscar will be delighted that savers in the EU are going to get smacked even further. After all, a rising equity market is all that matters right?
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8.34am... sp +6pts..... market starting to break...with new policies announcement....


8.37am...  German DAX hits 10000...first time.

sp +8pts....and climbing....


..all sorts of weird policy measures being announced....

sp' set to open around 1935... upper bollinger on daily AND weekly cycle...

At best..bulls could maybe hit 1945/50 on a Friday spike.


8.51am.. It would seem...

NO QE program, but market is pleased with another LTRO of $400bn or so

Metals are starting to move... gold +$13



9.04am... Equity bears need to keep in mind, there is sig' QE-pomo today....

I do NOT expect a reversal today....but perhaps tomorrow..from 1945/50.


9,18am.. sp +3pts..we've cooled a little, but still.. 1930s are due.