Yesterday’s FOMC announcement, where the Fed opened the door for changes to monthly bond purchases to either direction, gave markets a temporary reprieve but the positive mood faded after an initial reaction as the market was already looking for a more dovish stance (our sense was that consensus expected the “exit would be pushed back”, rather than a potential increase in purchases signaled). Today, markets are looking for similar support by the ECB, which somewhat takes away from the positive shock the central bank can deliver. Ahead of the ECB decision, European equities are mixed, while commodities have been the biggest beneficiaries, with oil up +0.5%, and copper up +1.5%.
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Scotiabank