Equities are continuing their rise this Friday on renewed hope for Europe. These are of course rumors, but the rumors are based upon “central banking officials who wish to remain anonymous.” The DJIA (NYSEMKT: DIA) went through 13,000 like the new 13-handle did not even matter. The NASDAQ is up 56 points at 2,950 and the S&P 500 (NYSEMKT: SPY) is up 24 points at 1,384 now.
There are reports that the European Central Bank plans to boost the strength of the Euro Zone. Mario Draghi is reportedly working with European policy makers and is supposedly proposing a round of bond buying by the ECB and policy makers as well as a proposed rate cut and a new LTRO. Other reports have Draghi supposedly getting set to meet with the head of the Bundesbank in Germany.
As with all market rumors and loose reports, we would count these as rumors even if the sources seem a bit more credible compared to rumors of the past.
JON C. OGG