Morning MoneyBeat Asia: U.S.Stocks Get a Little QE Jolt

        By Paul Vigna
        Market Snap: At the New York close: S&P 500 up 0.5% at 2032.12. DJIA up 0.2% at 17554.28. Nasdaq Comp up 0.3% at 4667.42. Treasury yields rose; 10-year at 1.851%. Nymex crude oil up 2.8% at $47.78. Gold down 0.5% at $1,287.60/ounce.
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        How We Got Here: U.S. equities markets rallied after the Journal reported details of the proposed QE plan that's being debated by the European Central Bank, detailing a scheme to buy up EUR50 billion worth of sovereign debt on a monthly basis in 2015 - and possibly into 2016 as well.
        The broad outlines are about what the market is expecting. The ECB is looking at a program of about EUR600 billion in 2015. While that's less than the EUR1 trillion most people say is "big enough" to move the proverbial needle, the proposed plan leaves open the possibility of extending it into 2016, giving the bank a chance to get up to that trillion level.
        We'll all find out tomorrow whether or not this is actually happening. If it is happening, it appears to be a program that is just big enough to not disappoint the markets, and just small enough to not freak out the Germans. If it isn't happening, the reaction to the Swiss National Bank's surprise last week is going to look like something that happened in a kindergarten class.
        Coming Up: Investors will be focusing on the European Central Bank, which is expected to formally unveil large-scale government bond purchase, known as quantitative easing. Supporters say that with interest rates near zero, central banks have no other options than QE. Skeptics counter that it might not work in the eurozone's fragmented economies--which range from mighty Germany to depression-ravaged Greece--and isn't worth the risk.
        What You Missed Overnight
        ECB's Proposed QE Plan Sees EUR50B in Bond Buys Per Month A proposal from the European Central Bank's Frankfurt-based executive board calls for bond purchases of roughly EUR50 billion ($58 billion) a month that would last for a minimum of one year, according to people familiar with the matter, an indication that officials are weighing massive stimulus to shore up the eurozone's fragile economy and boost inflation.
        U.S. Stocks Little Changed in Choppy Trading The Dow industrials were little changed in choppy trade Wednesday afternoon amid mixed corporate earnings news and as investors looked ahead to the European Central Bank's policy-setting meeting.
        Microsoft Shows Off Windows 10 Software Microsoft on Wednesday offered a deeper look at Windows 10, the next generation of its flagship operating software that will be able to work across computers, tablets and smartphones.
        Middle East Oil Producers Could See $300 Billion Export Loss - IMF Oil export losses for major Middle East crude producers are likely to total $300 billion this year but large cash buffers are allowing the countries to absorb most of the impact of falling oil on their economies, the International Monetary Fund said Wednesday.
        From The Wall Street Journal Asia
        China Looks to Ease Rules on Foreign Funding The Chinese government is proposing to regulate a murky corporate structure that has allowed China's Internet giants to court foreign shareholders. The move could effectively ease a much-flouted ban on foreign investment in sensitive industries.
        Divers Scour Ocean for Flight 8501 For the team of volunteers and search-and-rescue divers, scouring the seabed for wreckage and victims from AirAsia Flight 8501 has been emotionally painful and rife with hazards--including an encounter with a shark.
        Japan Presses Companies to Raise Wages During the new year's greeting season earlier this month, Japanese Prime Minister Shinzo Abe and Bank of Japan Gov. Haruhiko Kuroda spent some extra hours with corporate executives, clinking glasses and golfing. Their mission: persuading corporate Japan to hand out generous raises to workers during annual wage negotiations.
        PBOC's Zhou: China's Economy Is Stable China's central bank is confident that the country's economy is stable with a relatively high growth rate, People's Bank of China Governor Zhou Xiaochuan said Wednesday, despite recent data showing China's growth rate slipped to its lowest level in nearly 25 years.
        From MoneyBeat
        How Good Would QE Be for European Equities How much of a windfall will European Central Bank quantitative easing be for Europe's equity investors? U.S. and Japanese precedent suggest quite a lot. But there are good reasons to be cautious.
        Eurozone QE: 'Like Penalty Shoot-Outs at a World Cup' - RBS "Stepping onto a trading floor tomorrow will be the equivalent of watching penalty shoot-outs at a World Cup final where your team is playing," he added, saying that the ECB policy announcement may, in fact, be "one of the most anticipated moments since the crisis."
        Five Takeaways From Bank Earnings When Morgan Stanley reported fourth-quarter results Tuesday, it wrapped up earnings season for the big banks in what's quickly become familiar fashion this January. That's because its stock followed the same trajectory as all of its big competitors: down.
        Germans, French, Italians Snap Up Gold Investors in Germany, France and Italy have been buying up gold at faster rates than other eurozone members in an effort to mitigate risks ahead of the European Central Bank meeting Thursday, when the monetary authority is expected to launch itself down the path of quantitative easing.
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        (END) Dow Jones Newswires

        January 21, 2015 17:34 ET (22:34 GMT)

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