European shares are lower, pressured by disappointing results by Deutsche Bank and ending a six-session gain, as Asian equities and S&P futures were little changed after a record-setting rally in world stocks which pushed the MSCI World index to over $50 trillion yesterday, fizzled after Trump released unconvincing tax cut plans prompting traders to "sell the news" while caution set in as the ECB met.
On the surface, Deutsche Bank's results this morning came in better than expected with first quarter earnings more than doubling as Germany’s biggest bank benefited from a pick-up in market activity at the start of the year. In the three months to March, Deutsche managed to make a net profit of €575m, more than double from €236m in the same period a year earlier, when market were shaken by concerns over Deutsche’s viability, and above consensus estimates of €522m.
Authored by Pater Tenebrarum via Acting-Man.com,
Slightly Premature Victory Laps
With the ECB set to announce its latest monetary policy decision in less than 12 hours, one can summarize in one word what the market expects: nothing. Sure, there are some nuances - the central bank may wax philosophical about Europe's better growth prospects, and maybe even set the stage for a small signal as early as June about an eventual reduction of stimulus, but don't count on it. After all, there is a reason - or rather two - why markets are where they are today, and it has to do with central banks creating a record $1 trillion in new money out of thin air.
While today's "tremendously" vague one-page summary of Trump's tax plan had barely any detail - it did not even include the income ranges for the three personal income tax brackets - it did contain enough information for the CRFB to be able to score it, and calculate how much it would cost, or in other words assuming little or no offsetting revenues, this is how much additional debt it would add to the existing upward trajectory in US national debt.