How long can the world’s central banks
Keep garnering government thanks
For printing the cash
Preventing a crash
While policy choices shoot blanks
Hyper short note today as I am in transit.
In a nutshell there is no further clarity on Brexit as Labour and the Tories have yet to sit down and speak at length. The only vote that Parliament has passed was to prevent a hard Brexit. But they still have no idea what to do as an alternative other than the much reviled May plan.
Trade talks continue with no notable progress as the Chinese remain unwilling to accept a one-sided deal, but the US remains highly concerned over the Chinese willingness to comply with all the features that are in any deal. Maybe soon, maybe not.
Meanwhile, though equity markets are a touch softer this morning, virtually every weekend story was about how the central banks’ new collective dovishness should continue to support stock prices forever, or at least until 2020 or 2021 or longer.
And the dollar, while slightly softer remains at the top end of its range with no good reason to sell off.
At some point I assure you that the market will begin to ignore the latest round of central bank anesthesia, but not today.
It looks like a quiet session shaping up for today. Frankly I expect that Wednesday is the next time we will see some activity between the EU meeting and the FOMC Minutes.