7th Nov Recap

US

Stocks declined – over concerns regarding what a stronger Q3 GDP means for Fed policy – good news is bad news. On that note – intial jobless claims were down 9000 to 336000 in the latest week. But good news is still good for currency, and speculation of tapering also good for currency à US dollar appreciation against EUR, GBP, CHF, CAD, AUD… but down against JPY. Dollar index up 0.4%

Surprise ECB cut – provided an early boost for shares.

Twitter – a distraction from Fed policy debate. Updated: Twitter share price soars! http://uk.finance.yahoo.com/news/twitters-share-price-soars-opening-160733676.html

Europe

Stocks – mixed. Investors react to the cut. Initially markets rallied but then weakened. BoE left rate unchanged – as expected.

FTSE down 0.7%, CAC down 0.1%, DAX up 0.4% and SMI up 0.1%.

ECB cuts rates to 0.25% - alongside low inflation and 12.2% unemployment. Prior the rates had been lowered to 0.5% in May. ECB also cult marginal lending facility rate by 25 basis points to 0.75%. The previous change was a 50 basis points cut in May. Deposit rate - left unchanged at 0.

BoE kept key rate at current record low - 0.5%, and asset purchase program ceiling at £375 billion - pledged not to raise rates until the jobless rate falls to 7%.

APAC

Stocks declined as investors awaited the ECB’s monetary policy announcement and US growth and employment data.