While there were some aggressive price swings overnight, the trading into this morning is all consistent with our previous analyses. While our skepticism of U.S. equities and friendly view of the govvies remains, it is tempered once again by the quantitative easing factor in the wake of China’s major weekend move
Euro zone businesses ramped up activity this month, just as the European Central Bank starts printing money to spur growth and inflation, while a slowdown among Chinese factories has fueled calls for more stimulus there.
It is no secret that a significant focus had been placed on whether the "patience" language was going to be removed from the FOMC statement. Yet, as noted in last Wednesday morning’s pre-FOMC commentary, even as the Fed removed the allegedly critical patience from its statement, it respected recent weakness of U.S. and global economic data in substituting something which was just as dovish.