Google Analytics

Thursday, April 4

4th Apr - EU Open: BoJ delivered, will ECB?

Japan delivered. ECB will probably not, though there are reports that it is preparing something for PIIGS: easing collateral requirements to allow banks to throw in SME- and other stuff to ECB. With the sovereign side already handled by the OMT-program, this would fit the bill nicely. To anyone who complains: running a monetary union is like this. It would have been better not to have the thing in the first place, but that was then and this is this.

Previously on MoreLiver’s:

Follow ‘MoreLiver’ on Twitter or Facebook

News roundup – Between The Hedges
The 6am Cut London – alphaville / FT
Emerging Markets Headlines – beyondbrics / FT

3 Numbers to Watch: UK PMI services, ECB policy, US jobless: – TradingFloor
The Markit/CIPS Services Index for the UK is expected to post a slight retreat and the ECB, despite macro pressure, will likely keep its target rate unchanged in today's policy announcement. Later, jobless claims in the US are expected to tick down.

Market Preview: Central bankers in focus; EU services PMIs eyedTradingFloor
European markets are likely to open lower Thursday. With the BoJ announcing further monetary easing measures, investors will seek further cues in the ECB and the BoE's monetary policy meetings later today.

Danske DailyDanske Bank (pdf) 
Very aggressive BoJ announcement. Focus today on ECB: 25% chance of a refi-rate cut but watch out for non-standard measures to improve credit conditions. BoE to stay put. In the Scandi region, watch out for retail sales in Norway and a speech by Norges Bank’s Olsen

AamukatsausNordea (pdf) 
Japanin keskuspankki uusii rahapolitiikkansa * Vielä ei syytä huoleen USA:n työmarkkinoista * Jeni heikentynyt vahvasti BoJ:n lunastettua odotukset uusista elvytystoimista

AamukatsausTapiola (pdf) 
Japanin keskuspankki piti eilen ensimmäisen korkokokouksen uuden pääjohtajan alaisuudessa. Tuloksena oli odotuksia suurempi määrällinen elvytysohjelma. Osakemarkkinoille eilen vastatuulta USA:n makrodatasta. Japanin keskuspankilta voimakkaita elvytystoimia, jenin heikentyminen sai uutta vauhtia. Osakefutuurit plussalla, ennakoiden nousuavausta pörssiin.


A Graphical Walk-Through Of An 'Un-Fixed' EuropeZH
Via Alex Gloy of Lighthouse Investment Management

Hawkish DoveTim Duy’s Fed Watch
Williams placed a marker for the date that the Fed begins its exit from quantitative easing - summer, assuming that his current forecast holds. I am not so sure the bond market agrees with that assessment.

March Employment Report PreviewA Dash of Insight

Bank of Japan scraps overnight call rate, sets base money as new target Reuters
The BoJ decided on a radical overhaul of its policy framework on Thursday, shifting its target when setting monetary policy to base money from the current overnight call rate.

Bank of Japan Boosts Bond Purchases as Kuroda Takes HelmBB
With Kuroda presiding over his first meeting since taking the helm last month, the board today streamlined its asset purchase programs, temporarily suspended a cap on some bond holdings and dropped a limit on debt maturities. The BOJ will buy 7 trillion yen ($74 billion) of bonds a month, the central bank said in a statement.

Presenting… the new BoJalphaville / FT
This sort of initial euphoria has fizzled out before — but the new Bank of Japan governors appear to have actually come through with the goods

Introduction of the "Quantitative and Qualitative Monetary Easing"Bank of Japan (pdf)

Bank of Japan Launches Easing CampaignWSJ

Bank of Japan Launches Strong Easing CampaignWSJ

BoJ Unveils 'Shock-And-Awe' Quantitative-Qualitative EasingZH

Yen Falls Versus Peers as BOJ Purchases Exceed ForecastsBB

Koo: Currency Markets Are Misinterpreting the Impact of QEPragCap

Central Bank Decision TimeZH
Note via SocGen’s

Stagflation-Lite in Some Emerging MarketsMarc to Market

How A 28 Year Old Ex-Goldman Trader, Who Accounted For Up To 20% Of E-Mini Volume, Blew UpZH

Kääntyykö tuuli Saksassa?
Sampo Terho

Jari Korkki: Ilmaisia neuvoja EspanjalleYLE
Tulipa taas käytyä vaihteeksi Espanjassa. Siinä jalkapallo-ottelussa, mutta nyt ei puhuta siitä.