Buying Panic Fizzles As Option Expiration Looms

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies, Market Commentary

In the absence of any key economic developments in the Asian trading session, Asian stocks traded mostly under the influence of the late, pre-opex US ramp momentum courtesy of another day of ugly economic data in the US (bad econ news is good news for liquidity addicts), closing solidly in the green across the board, led by China ( 1.6%) and Japan ( 1.1%) thanks in no small part to the latest tumble in the Yen carry trade, which mirrored a bout of USD overnight weakness.
And since a major part of the risk on move yesterday was due to ECB member Ewald Nowotny’s comments welcoming more QE, news from Eurostat that the final Eurozone CPI print in September was -0.1%, which confirmed Europe’s deflation continues, should only be greeted with even more buying as it assures further easing by the ECB – even if like Sweden the ECB has virtually no net supply left to monetize – is inevitable.

This post was published at Zero Hedge on 10/16/2015.