Europe

Submitted by Bill Blain of Mint Partners

What do we know different this morning?

There is apparently nothing to worry about. Everything is coming up roses. These are not the droids you are looking for – says my market guru Steve Previs. All the old market bears, like me, are looking for stuff to grumble about – terrified by the unintended consequences of QE, caught in the headlights of apparently overbought markets, of whatever else panics them… etc.

But what do we know?

Submitted by Rajan Dhall of FX Daily

Going into the MPC announcement later on the this morning, no one is expecting any change in policy, nor should they - now or indeed any time soon.  We would expect this view to be shared by the broader spectrum of investors, but as we know, the reaction today hinges on whether we get any additions to the hawks that are Messrs McCafferty and Saunders, and this would be enough to send Cable on another rally higher, where would likely see the upper end of what we believe is the current range of 1.2500 to 1.3500. 

Global stocks backed off from all time highs, and S&P futures are unchanged ahead of the much anticipated US CPI report, which is expected to break a streak of five consecutive misses, while eyeing disappointing overnight Chinese economic data which missed across the board. European stocks and Asian markets were also modestly in the red, with the relentless global rally to new daily record highs taking a breather amid some concerns China's economy is rolling over, which weighed on commodities including base metals, which in turned dragged down mining stocks.

European Commission chief Jean-Claude Juncker delivered his annual state of the union address on Wednesday, in which he laid out his grand vision for federalist Europe, and urged European Union governments to use economic recovery (i.e., Mario Draghi's nationalization of the bond market), the political weakness in the US and Brexit as "springboards" toward a closer union, built on an expanded euro zone and a pivotal role in world trade.

JP Morgan Chase & Co. CEO Jamie Dimon’s declaration that he would fire any JPM traders whom he knew were trading bitcoin unexpectedly ranked among the most popular stories on several respected financial media websites – despite stiff competition from Apple Inc.’s 10th anniversary product launch.