European Central Bank bond-buying to begin next Monday, Europe rallies, Wall Street higher, ASX futures up 4 points

Comments from the European Central Bank (ECB), following their interest rate decision, met or slightly exceeded what the market was expecting, and this is probably best gauged by examining the weakness of the EURUSD currency pair, which appears on today's first chart. Next Monday the Bank will begin buying bonds to the tune of 60 billion euro per month and this will continue until at least September 2016. There was no new news in regard to Greece, however the emergency liquidity assistance remains in place and likely will continue to until the charades end. With China cutting borrowing costs and Australia easing, it just feels like the world is not ready for anything like a rate hike cycle from the major economies - again I believe that any prospective US interest rate rise will continue to be pushed out further along the curve. Presently there's a 54% chance of a rate hike priced in for the US Federal Reserve's September meeting - let's see how that plays out.

In today's last chart I've illustrated the MSCI World ETF, a listed fund that aims to capture the total return of selected stocks from 23 developed markets, which shows a great start to equities in 2015 across the board. This ETF, among many others, can be trade on the Rivkin Trader platform and may be a very passive way to get some international exposure. The ETF is priced in US dollars, so investors and traders might like to consider a currency hedge if purchasing the fully-paid version of the ETF. For those who would like to just trade the CFD (and therefore be exposed only to the trading profits/losses and not the currency risk based on the notional value of the holding), there are a few very similar ETF CFDs that the Relationship Managers on the Rivkin dealing desk can point you towards. Just email customerservice@rivkin.com.au for more.

Those holding iron ore stocks will have to brace themselves for a bumpy ride today, with the benchmark iron ore spot price falling 3.57% over the last session. Commodity markets were flat to poor in general last night, and this probably explains why the ASX 200 has taken such a meagre lead (+4 points) from rising equity markets overseas.

Today‚Äôs charts are taken from the Rivkin Trader platform. 30,000 global instruments available to trade including FX, commodities, index, ETFs and international shares. Trade Australian share CFDs from just $8 or 0.10%. Click here or phone 1300 748 546 to get your free $100,000 demo account.


Upcoming economic announcements: UK inflation forecast out at 8:30pm, Eurozone GDP out at 9pm, US employment report out at 12:30am, all Sydney time.

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