IIFT Daily Note with Peter Brown

ECB today, slim chance of stimulus

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Firstly Ukraine and a bit of good news. Putin backed off a little telling rebels to postpone the vote. Market got a nice bounce and we are back to familiar levels. We are range bound, even it it is a wide range but in reality since this Ukraine situation started markets are little changed. Gold heading back to support at 1280.

Europe is the focus today and the ECB meeting and Mr Draghi speech later. I will be amazed if we get anything concrete. Expect the usual , ready to act etc. We may see some initial weakness in the Euro but most likely a bounce later. If on the off chance he announces a stimulus measure than the Euro is a straight sell.

 

Conditions today are Choppy.

Levels are S&P (JUN) 1882  1867  DOW (DFB) 16600  16450 DAX (DFB) 9600  9500  Euro 1.3950  1.3850  Gold 1300  1280

 

One Comment

David

May 8, 2014

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Hi Peter

How will equity indices react to the ECB today. Will no action be negative?
How is the bond market currently impacting stocks?

Regards
David