Welcome to a schizophrenic morning. The headline moves in the market today are being put in place this very minute and the future is spoken by only one of the many little foggy voices whispering in my head this morning. I picked him out on the $ES_F early than stopped him out for no good reason! Again…
[update] As I look at the close now, I’m reminded of Harry Potter’s House-elf, Dobby.
Fighting for top-spot is Mr. George Papandreou who after offering to resign, has just finished lunch in Cannes and is running back to Athens for an emergency cabinet meeting. The popular (and unpopular) press is waiting for the news conference. I think the BBC was the first to report this little twist.
At the same time and fully ignored were the initial claims numbers which came in under 400k. Relatively good news but the running soap opera that is the G20 has all but hijacked the positive earnings and unemployment numbers.
Another contendor is Mario Draghi (Super Mario as he’s becoming known), who after 2 days as the head of the ECB has surprised the markets by lowering it’s key lending rate to 1.25%. This runs contrary to his mandate to fight European inflation but he needs to pee in the garden and with essentially no growth coming from Europe he’s marking his territory. His press conference has just finished, and I have to say he speaks eloquently.
So between those three little tidbits, and the whispering voices in my head, the markets are now off to the races.