QE3 to the rescue .

Risk markets saw choppy trade on Friday. Equity markets had found some relief following the stronger than expected US NFP numbers however had looked to reject the move higher heading into the European cash close. The European cash close then saw an announcement from the Eurozone that the ECB was willing to buy Italians and Spanish debt, which again saw risk markets turn higher to close on a more firmer footing than previous days. Bunds closed sharply down on the day as did the USD. However this weekend has seen Standard and Poor ’s downgrade the US sovereign credit rating from AAA to AA+ with the outlook remaining negative. This is likely to weigh on risk markets first thing today. However with the upcoming FOMC meeting tomorrow, we may start to see a recovery into it as participants look for more Q.E. To save the markets.


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