Wednesday’s statement is reminiscent of the Fed stance at the mid-September FOMC announcement and press conference. Equities’ response to their lack of a rate increase then being accompanied by that particular phase of misguided ‘normalcy bias’.
Overnight we saw several central banks meeting globally on the heels of yesterday's FMOC report. It featured a mixed bag of results with Brazil raising rates to curb inflationary concerns, Russia cutting her dramatically inflated rates aimed at currency support from 15% down to 13.5%, and Japan standing pat at her current monthly quantitative easing amount of 80 trillion yen.
The surprise liquidity measures announced by China’s Central Bank and reduced manufacturing and the comments by the European Central Bank’s President Mario Draghi spurred the activity in the markets on Friday.