Short and Sharp: Short and shallow, actually
Typically, when a central bank eases monetary conditions, risk assets rally. Last week, however, global equity markets sank in response to the European Central Bank (ECB) decision to extend its forward guidance and announce new liquidity operations. Any positive impact from the more dovish interest…
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Short and Sharp: Fed U-turn: Slice and dice it, the conclusion is the same
The market has been celebrating the Federal Reserve (Fed’s) more dovish stance, but two weeks after its U-turn investors remain split over whether the Fed was responding to December’s market meltdown or fears of a weakening economy. I wrote* in the FT earlier this week regarding the former, but…
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