Submitted by Lance Roberts via RealInvestmentAdvice.com,
Quite a week.
Last week, the markets rallied in anticipation Britain would ‘Remain’ in the European Union which reversed the sell-off from the previous week. Despite a variety of polls and betting sites showing rising odds of Britain remaining in the EU, the ‘inconceivable’ occurred last Thursday proving everyone wrong.
But this week, the markets proved everyone ‘wrong’ again. I suggested on Tuesday that Central Banks would come to the rescue once again, that happened yesterday as both the BOE and ECB made announcements hinting at more QE this summer. To wit:
BOE: SOME MONETARY POLICY EASING LIKELY OVER SUMMER BOE: MPC WILL DISCUSS FURTHER POLICY INSTRUMENTS IN AUG ECB: TO WEIGH LOOSER QE RULES AS BREXIT DEPLETES ASSET POOL ECB: OPTIONS TO INCLUDE MOVING AWAY FROM QE CAPITAL KEY ECB: CONCERNED ABOUT SHRINKING POOL OF ELIGIBLE DEBT For those predicting financial market chaos and mayhem, Central Banks has successfully juiced asset prices erasing the majority of the previous losses.
This post was published at Zero Hedge on Jul 1, 2016.
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