Key Quotes

"Equity markets rallied overnight and the euro underperformed. There were a lot of cross currents in markets with month and quarter end, but fundamentally the confirmation of negative September inflation in the euro area was seen as skewing the risks towards additional QE on the part of the ECB."


"This potentially supported risk assets but was negative for the euro. Sentiment was also supported by the Peoples Bank of China’s announcement that it would cut the first home mortgage deposit requirement to 25% vs 30%."


"On a different day the market may have chosen to focus on the reason for that policy change, of course, but markets appear to be in a binary frame of mind of late, and last night was designated to be “risk on”."


"At the time of writing, the S&P500 is up 1.4%. The DAX closed up 2.2% and CAC 40 was up 2.6%. Fixed income markets were little changed on the day. Gold fell on reduced safe haven demand. Brent oil prices rose, whilst prices for WTI fell."
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