It feels like Europe is always following his market friends given the result today. Europe was doing good on Friday and sometimes we hope this move will stay, after all. The problem is more why it happens. Mario Draghi, the president of the European Central Bank (ECB, but the acronym looks like an U.S. TV network name), said basically that Europe could do more easing. At least, situation could be "re-examined" in December. And it feels like markets only want easing, eh. Meanwhile, China is cutting interest rates (once again) and this makes European stocks happy, like Wall Street. Finally, some other earnings got published about the Q3 and it seems to bring more positive trend. The numbers: DAX 30 did the best performance with +2.88% or +302.57 pts at 10,794.54 pts. IBEX 35 got +1.07% or +110.90 pts at 10,476.30 pts. FTSE 100 is the lowest gain here with +1.06% or +67.80 pts at 6,444.08 (nice number!). Finally, CAC 40, at 4,923.64 pts, did +2.53% or +121.46 pts.
The markets are addicted to easing and low interest rates it seems. So much of the intraday movements have to do with speculation about current and future policy. I think it’s a tool that can work well, but should also be used sparingly.
Well, yes, to be more precise in my opinion, it will punctuate the mood of the market today, depending of the likeliness of interest raises or drops. Currently, any, and I said any, move to drop the interest rates is welcome from the market. It is not especially the best for the health of the economy, neither for the industries, I don't know what they think about it, and markets' wills are often not the industry wills. But market likes it. And every time there's a rally when there's a likeliness of interest drop or of stimulus measure. In my opinion, stimulus measures are disconnected of reality, so for a time they're welcome, but it shouldn't be permanent, and 2015 is nine years after 2006.
