Asian markets have their largest daily gain for a month as investors absorb the plans announced by Mario Draghi and react positively. China, in particular, was strong up 4% after announcing a stimulus package involving various infrastructure projects with around $157bn expenditure.

In European news, ECB’s Coene says that an October rate cut may be a possibility although will depend on economic development. European equity futures are pointing to further gains this morning, up around 20bps, after posting impressive gains following Draghi’s conference call and strong US data. In FX 1.264 remains the key pivotal level for EURUSD. Look out for German, Spanish, Dutch and UK Industrial data.

Us markets were sharply higher last night to sit at 4 year highs, technically the 1425 level on the S&P is key and holding that level for the next few sessions will likely imply further gains. Key today will be non-farm payroll data, with consensus looking for 130k .


Philip Ball | Sales and Trading