For more on the Fed's change, see my previous post. UK seems to be moving to the same direction, given the yesterday's comments by the next governor for the Bank of England. I think there is more to the Fed than currently meets the eye - but it will take time before markets understand this. Sell for couple of weeks.
Previously on MoreLiver’s:
Roundups
News
roundup – Between
The Hedges
The 6am Cut
London – alphaville
/ FT
Emerging
Markets Headlines – beyondbrics
/ FT
Reference
Debt crisis
live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
Economic
Calendar – Forexpros
MORNING BRIEFINGS
The
possibility of tinkering with Switzerland's monetary policy could drive
EURCHF higher, while updates on jobless claims and retail sales in the US may revise the year-end macro
outlook.
Market Preview: US Retail Sales and EU Council
meeting eyed – Saxo
Bank
European
markets are expected to open flat Thursday. In a recent development,the EU has
reached an agreement to give the ECB power to supervise the region's major
banks. The US Fed yesterday announced additional easing measures to spur the
economy.
The Fed
surprises and introduces ‘Evans rule’ and asset purchases of USD45bn. US stocks
rallied but gave up the gains as fears over fiscal cliff returned. Eurozone
agrees on common bank regulator as compromise is reached. Berlusconi may pull
candidacy for president if Mario Monti runs. Market movers today: US retail
sales and PPI, SNB meeting, ECOFIN meeting
Aamukatsaus – Nordea (pdf)
Fedin kevennystoimet jatkuvat * Pankkiunioni ottanut
askeleen eteenpäin? * EURUSD nousuun
Fedin myötä
Aamukatsaus – Tapiola
(pdf)
FED käynnisti odotetusti
yhä voimakkaamman elvytyksen eli QE∞+. Lisäksi keskuspankki sitoi
nollakorkopolitiikkansa työllisyyteen ja inflaatioon. Markkinoiden reaktiot FED:n
lisäelvytykseen maltilliset, kun USA:n budjettikiista painaa tunnelmia. Osakefutuurit
aivan marginaalisesti plussalla, indikoiden fllättiä avausta pörssissä.
Markkinakalenteri – Nordnet
Markkinakalenteri – Taloussanomat
EUROPE
EU to Dilute Timeline for Euro-Area Overhaul,
Draft Shows – BB
EU Makes ECB Oversight Deal That May Speed Bank
Aid Path – BB
Europe deepens union with ECB as chief bank
watchdog – Reuters
Europe clinched a deal on Thursday to give
the European Central Bank new powers to supervise euro zone banks from 2014,
embarking on the first step in a new phase of closer integration to help
underpin the euro.
UNITED STATES
Cliff Notes, Fiscal Style – A
Dash of Insight
FED
The mandate is willing but the tools are weak – Free
exchange / The Economist
In other
words, the Fed should use lots of QE now, when it works, so that it doesn't
have to use more later, when it may not. This is not exactly the world's most
ringing endorsement of unconventional monetary policy. But it's an honest one.
FOMC Afterthoughts: Priced in, to be continued? – Saxo
Bank
The Fed
announced new monthly bond purchases to replace the Twist, but surprised many
by changing to explicit targeting of unemployment below 6.5%. My feeling is
that the markets were not really happy with the outcome.
Bernanke Wields New Tools to Reduce
Unemployment Rate –
BB
Trendline on the unemployment rate projects the
Fed ending zero rate policy by late 2014 – Sober
Look
OTHER
Are Equities A Good
Inflation Hedge? – ZH
views from UBS
A Quick Update On QE4 – Short
Side of the Long
market views
IN FINNISH
Vallattomasti valtiopäivillä ja euron armoton
logiikka – tyhmyri
Ruotsin linja tiukkenee - Pääministeri:
Euroalueella on menty liian pitkälle – US