Morning MoneyBeat Europe : Weak European Inflation Revives Global Bulls

        By David Cottle
        Please feel free to send this email to friends and colleagues and include this link so they can sign up to receive it for free too http://on.wsj.com/MoneyBeatEuropeSignup
        Follow us on Twitter @WSJMoneyBeat.
        Good Morning Europe
        Stocks are called higher from the bell Thursday as feeble inflation numbers out of Europe in the previous session have seen the bulls out in global force. They're hoping that the European Central Bank will at last step up with full-blown sovereign bond purchases in an attempt to jump start the euro zone's sputtering economy.
        There are the usual cautious calls that markets may be getting ahead of themselves. 'Core' price data, which strips out the effects of volatile items, notably oil, was a lot stronger than the weak headline figure, but, for the moment, they are being ignored. Of course the ECB's task will be made harder by divergent conditions between euro zone member states. We learned yesterday foe example that German unemployment was at a record low, while Italian joblessness hit a record high.
        The Bank of England's monetary policy decision is coming up, but no change to the settings is expected.
        Market Snapshot: U.S. markets (Wednesday close) DJIA up 1.2%, Nasdaq up 1.3%, S&P 500 up 1.2%. Nikkei (Thursday close) up 1.7%. Brent crude up 26 cents at $51.41, Nymex crude up 26 cents at $48.91. Gold down $1.20 at $1209.50. EUR/USD $1.1819, USD/JPY Yen119.88. 10 year Treasury yield 1.99%, Bund 0.48%, Gilt 1.62%.
        Watch For: European Union PPI, Retail Sales, Business climate. Bank of England monetary policy decision. U.S. weekly jobless claims.
        What you may have missed on MoneyBeat:
        What Are the Chances of a 'Grexit?' Look at the Bonds: There's a distinct lack of festive cheer in Greek financial markets. After a holiday on Tuesday for Epiphany, they have picked up where they left off: seriously down in the dumps.
        Is the Eurozone Data Finally Bad Enough for Germany?: The eurozone slipped into negative inflation in December, giving the European Central Bank as much of a shot in the arm as it needs to launch outright quantitative easing later this month.
        Goldman Sachs Brings Forward Forecast for European QE: Even Goldman Sachs is now saying sooner rather than later. The U.S. heavyweight on Wednesday joined the January camp when it comes to predicting at what point the European Central Bank will bite the bullet and announce full-blown sovereign quantitative easing. Previously, Goldman had attributed a higher likelihood to QE in March.
        Locking in Low Yields for 30 Years? Why, Yes: Would anyone buy a 30-year bond at a yield of little over 1%? That's exactly what happened on Wednesday, as the yield on the Germany's 30-year government bond sank to an all-time low of 1.05%. To be sure, government bonds around the world have rallied as investors face up to persistently low inflation, but it's striking that investors in German debt are happy to lock in such a low yield for such a long period of time.
        Bob Doll's 10 Predictions for 2015: the Fed, Oil and the Market: Portfolio manager Bob Doll of Nuveen Asset Management debuted his top 10 predictions for 2015 Wednesday morning in Manhattan and, like the majority of Wall Street, he thinks stock prices will keep climbing this year. But it's not all smooth sailing ahead. His biggest concern: Deflation, led by oil prices.
        European Sovereign Ratings: Dates For Your 2015 Diary: That old, "fun" uncertainty of waiting for ratings firms to pronounce their findings on European government borrowers when the need arose is long gone. Since last year, agencies like Moody's and S&P were obliged to publish and stick to a pre-announced schedule. So without further ado, here are the dates for your diary for this year.
        Here's the BATS Proposal to Reform the Stock Market: Fresh on the heels of Intercontinental Exchange Inc.'s proposed "grand bargain" between exchanges and banks to reform the stock market, BATS Global Markets Inc. has published an open letter with its own list of proposals.
        Euro's Finding it Tough, But Has All the Bad News Been Priced In?: How beleaguered is the euro? Well, we know that the single currency has already lost about 1.9% against the dollar since the start of the year, sinking to its weakest level in nine years as investors piled on the short trades. But has all the bad news now been priced in?
        Overnight Action:
        One Suspect in Paris Attack Surrenders : Two others remain at large.
        Fed Warns on Global Growth Fears : Federal Reserve officials, worried about weak growth overseas, are endorsing new measures by foreign officials--most notably at the European Central Bank--to stimulate their economies.
        European Business Cheers Falling Euro...For Now : Despite stagnating prices and flagging consumer sentiment, many European executives are taking comfort in what is proving to be--for the time being--a more powerful economic current: a sharply falling euro.
        Gross Helps Fuel New Fund With His Own Cash : A majority of the money raised in recent months by Bill Gross for new employer Janus Capital came from the small Southern California brokerage office where one of his personal financial advisers works.
        (END) Dow Jones Newswires

        January 08, 2015 01:35 ET (06:35 GMT)

#FX
#Forex
#GlobalBulls
#Europe
#WeakEuropean
#EuropeInflation