For a change, US equities markets are taking their cue today from European markets

Jay Soloff

Argonath Financial

For a change, US equities markets are taking their cue today from European markets. Equities are higher, bond yields are down, and gold is up on major news out of the ECB. Mario Draghi and the ECB cut its benchmark rate to 0.15%, while cutting the rate it pays on deposits to negative 0.1%. That's the first time on record a major central bank has utilized a negative rate, at least on a main rate. Th ECB is also opening a $542 billion liquidity channel for bank lending, which could later be tied to asset-backed securities based on bank loans. All of this action is meant to get credit loosened throughout the Euro area, particularly with deflation concerns creeping higher. Draghi also said the ECB isn't finished implementing policies to help kick start lending.

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Jay Soloff
Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...


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