Recap 2-9-12

~ globalmacrotrading

Main Items:

  • Greek political leaders have reached an agreement, to the satisfaction of the troika.
  • BoE increased QE by 50bn as exp. Total targeted purchases are not at 325bn, ~25% of the total Gilt stock.
  • ECB kept policy unchanged as exp. Draghi said that risks for growth are to the downside, while price risks are balanced. The ECB also eased collateral criteria, which is expected to increase the ECB eligible collateral pool by 600-700bn, at a haircut of around 2/3rds. He didn’t make any comments on OSI for Greece.
  • US Initial Jobless Claims declined to 358k last week vs 370k exp and 367k prev

Overseas:

  • China CPI increased to 4.5% YoY in Jan vs 4.0% exp and 4.1% prev
  • Australia NAB Business Confidence improved to 1 vs -4 prev

Commentary:

The pro risk move continues for now. The Shanghai A-Share Index broke above a 10 month trend line today, albeit a bit hesitantly:

Published by globalmacrotrading

I am a G20 Global Macro Portfolio Manager in NYC. My background includes stints at a major investment bank, a commodities market maker, and one of the world's largest global macro hedge funds.