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European shares are at the day's highs following the news coming out of the EU summit. It's hard...

European shares are at the day's highs following the news coming out of the EU summit. It's hard to believe anything contained in the draft is inspiring the move, but markets make opinions, says the man. Stoxx 50 +2.1%, Germany +2%. S&P futures +1%.
Comments (11)
  • It is Draghi's comment that the ECB can now act more aggressive!
    9 Dec 2011, 07:33 AM Reply Like
  • Aggressive in what sense? ECB will provide liquidity to the banks but this is not where the problem is. The bank liquidity problem is a consequence of the sovereign solvency problem and there is nothing in the current draft that addresses this, especially in the short-term.
    9 Dec 2011, 07:48 AM Reply Like
  • He said something about bonds too now. ECB will buy bonds more aggressive.
    9 Dec 2011, 07:51 AM Reply Like
  • There is no need to say the word QE in the draft.it is up to Draghi and ECB to decide on their own what to do in terms of bond buying program (sterilised or not).this is what the market is buying
    Fiscal austerity from eu members vs potential QE from ECB.
    I dont buy it but it can last for a while.
    9 Dec 2011, 07:53 AM Reply Like
  • Lemming stampede!
    9 Dec 2011, 07:33 AM Reply Like
  • I guess the European investors are buying the snake oil sold by the European politicians. It will provide for a nice pop in pre-market and maybe in the first hours of regular trading. Looks to me like a shorting opportunity but I will watch the market action in the first hour to confirm this.
    9 Dec 2011, 07:45 AM Reply Like
  • Go ahead and short - but maby you are shorting the US economy and not news from Europe for a couple weeks. Good luck with that.
    9 Dec 2011, 07:46 AM Reply Like
  • I would not short the US economy right now. It is doing well and if not for the European bozos, this market would be above 1300. I was buying stocks at the end of Nov in hope the Europeans would get their act together but they did not. I would short the blip of optimism coming from the disastrous European summit. They did not solve a thing and they did not show that they even understand their problems. The positive market reaction to this disastrous summit is strange; it shows the level of confusion in the marketplace and it offers a potential shorting opportunity.
    9 Dec 2011, 08:53 AM Reply Like
  • On that I agree! 100%. Except I do not think the summit was a disaster. Was better than I thought, England will get kicked in the &&*&*^^ for what they did.
    9 Dec 2011, 09:21 AM Reply Like
  • i think you are missing the point that politicians semi solution is opening the door to ECB potential QE.i personally don t buy it but it is what the European market is buying and it will be difficult to fight against the risk of having ECB in the news at one stage.also European banks are rallying big because of ECB action on thursday
    good luck with your short
    9 Dec 2011, 09:40 AM Reply Like
  • "...but markets make opinions..."

     

    True. Well-said.
    9 Dec 2011, 08:16 AM Reply Like
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