Asian stocks sharply higher after the Fed announced that it will buy mortgage securities to boost growth. The Hang Seng is the lead performer up almost 3%, Sumitomo Metal Mining rose 10% as precious metals touched their highest levels since February. Elsewhere in the region S&P upgraded South Korea’s rating.
According to sources, the Eurogroup are putting pressure on Spain into seeking a full sovereign bailout. The Dutch finance minister has said if the Greek deficit is worse than expected, the country could receive more time but not more money. European equity futures are looking around 1.5% better, with the Euro trading at 1.305.
The big news was the announcement from the Fed on further easing with plans to buy $40bn of debt every month. The action subsequently led to a risk on move. Today look out for CPI data, retail sales and University of Michigan confidence.
Philip Ball | Sales and Trading