In the beginning there was liquidity! Video outlook (german)

For the first time in more than two years, the US Federal Reserve, the ECB and the Bank of Japan have simultaneously expanded their balance sheet total. The result has been a euphoric rally on the stock markets since October. Even though the expected and priced-in recovery of the global economy is not taking place. Tonight, China’s central bank lowered an important interest rate (the 7-day repo rate) slightly (from 2.55% to 2.50%). China’s stock markets and even the Hang Seng in Hong Kong despite further escalation of violence in the plus. Perhaps Hong Kong is currently the biggest short-term risk for the markets, because Beijing will not be able to stay on the sidelines much longer. Neither will it be able to stay on the sidelines much longer, although this would be perceived as a sign of weakness. The other risk is what happened on the US money market.

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