Morning Update – 11/03/16 – by Arjun Lakhanpal

Morning all.. A wild session yesterday that took no prisoners.. what a move on EUR !! Wall st had a very choppy sesion as well and after a late rally manged to close unchanged on the day! In Asia we saw the Nikkei higher by 0.5% and HK and China both higher.. In FX the USDJPY has rallied on the back of stocks and oil.. WTI trading up 2.3% at $38.70.. US 10yr yields remain high at 1.94%.. EUR a little lower but quiet in Asia but AUD moving higher again as stocks rally this morning..DAX futures up 140 and Dow minis up 138.. Given that Draghi over-delivered on most measures one can only wonder what the market reaction would have been if he had under delivered.. The inclusion of non-financial corporate bonds was a surprise and it marks another landmark moment for the ECB. This is the first time they’ve entered the private unsecured market. Longer term this might be significant as it paves the way for other non-government or unsecured risk purchases at a later date. For now we’ll have a good 3 months of speculation as to what they might buy and how successful they’ll be. As a last word, clearly one has to be sceptical as to whether the package will work for the wider economy but it terms of having a go it’s hard for us to say that it’s not an impressive attempt. Looking at the day ahead, today we begin with Spanish CPI, Italian IP and UK trade data. Good luck..