4th Oct - US Close: CB's happy & waiting

Nothing came out of today's central bank meetings - everyone is waiting for the Spanish bailout request so that the ECB's resolve can be measured, but perhaps even more importantly, the political will and ability of the creditor countries as well. Plenty of economics articles floating around - on the European imbalances and the QE effects. I am saving those for the weekender posts. I'm expecting more risk-loving on Friday.

Previously on MoreLiver’s

4.10. US Open: Good, bad or fugly?

4.10. EU Open: Schwing!

3.10. US Close

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Roundups and Commentary

News – Between The Hedges

Markets – Between The Hedges

Recap – Global Macro Trading

The Closer – alphaville / FT

Roundup – A View From My Screens

Roundup: Japanese politicians urging the BoJ to act – Kiron Sarkar / The Big Picture

Tomorrow’s Tape: Jobs – WSJ

European Summary – ZH

  European Sovereigns Weaken Further As Pattern Emerges

US Summary – ZH

  Oil & Stocks Win As Bonds, USD, & AAPL Lose

Reference

TV: Bloomberg, CNBC, BBC

Debt crisis: live – The Telegraph

The Euro Crisis Blog – WSJ

Tracking Europe’s Debt Crisis – NYT

FX Options Analytics – Saxo Bank

European 10yr Yields and Spreads – MTS indices

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EUROPE

Saxo TST sells CAC-40 on a budget which is wrong in so many ways – Saxo Bank

Last week's French budget and President Francois Hollande's more than desperate attempt to stem France's fiscal deficit by penalising French industry and investors will have a price. The CAC-40 will underperform relative to other markets over the next six months. We are opening a net short

  EUROPE: ECB

Introductory statement to the press conference (with Q&A) – ECB

Draghi Again Confirms ECB Pari Passu Status Is A Pipe Dream – ZH

ECB staying put – time for the governments to act – Nordea

The central bank seems rather comfortable with the current situation, and clearly sees it is up to the governments to take the next steps. The more important next step will be an aid request from Spain, but it might still take at least several weeks for such a request to surface.

Thoughts on the ECB – Marc to Market

The most important thing that ECB President Draghi has said in his prepared remarks was the reluctance to reschedule Greek bond holdings on grounds that would be tantamount to monetary financing.  

Flash Comment: ECB meeting – zzzzzzzzzzzzz – Danske Bank (pdf)

 

Waiting for Rajoy – Free exchange / The Economist

But the delay is risky. Bond investors may call Spain’s bluff, causing another damaging revival in financial tensions and intensifying its recession as well as hurting the wider economy of the euro area, which is quite sickly itself. Europe cannot afford to wait much longer for Mr Rajoy.

USA
Goldman on Fiscal Cliff – ZH

Neither Democrats Nor Republicans Look Inclined To Budge On The Fiscal Cliff

Goldman Sachs look at FED operations – ZH

QE3 Has Been Fully Priced In: Comparing QE1 vs QE2 vs Twist 1 vs Twist 2 vs QEternity

FOMC Minutes Reveal Nothing New – ZH

Flash Comment US: FOMC minutes: next step an Evans rule – Danske Bank (pdf)

OTHER

EMEA Weekly, Week 41 – Danske Bank (pdf)

IN FINNISH

Varuskunnat kiinni, jotta Kreikka ja Portugal voivat jatkaa asehankintoja – Kalle Pahajoki / US Puheenvuoro

Eurobudjetti: paljon huonoa - nolla hyvää puolta – Henri Myllyniemi / US Puheenvuoro

 

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