The #SPX erased four days of losses in an strong up day today. Yesterday the bears were no able to push the market lower, below 1980 and today the bulls took control.
Asian risk markets are expected to open positively this morning on reports of massive People’s Bank of China stimuli and receding fears of a significant hawkish shift in the US Federal Reserve language.
The Australian iTraxx is down 1.5bp this morning at 81bp, matching Tuesday’s 1.5bp tightening to 60bp in the US IG22. Europe’s main and crossover credit protection costs had earlier finished unchanged and 5bp wider at 61bp and 254bp, respectively.
Wall Street benefited from calming predictions from respected Fed-watcher Jon Hilsenrath. He believes tomorrow’s FOMC statement will retain the Fed’s “near-zero” rates language, as well as the “considerable time” guidance between the ending of QE and the first US rate hikes.
