Calm before the storm
To maintain the rising trends in stock prices and bond prices (and hence the downward pressure on interest rates and credit spreads), central banks around the world have to create as much or even more liquidity as they do today. However, both the Fed and the BoJ are approaching their limits to how much liquidity they can create without damaging their economies. This will lead to major trend changes in financial markets.
Will China give Europe a leg up?
There seems to be no end of misery for the Eurozone. Could the fastest-growing and most hyped major economy on the planet – China – "save" Europe? In the most basic terms, the key question is, are the Chinese coming? And if they are, is this good news or bad news for Europe?
Markets
- EUR / USD1.293
- EUR / GBP0.8547
- GBP / USD1.5125
- EUR / CHF1.2432
- USD / CHF0.9615
- EUR / JPY130.94
- USD / JPY101.27
- US 10-yr Treasury yield2.0107
- DE 10-yr Bund1.434
- UK 10-yr Gilt1.897
- Swiss 10-yr yield0.656
- JP 10-yr JGB0.846




