Market mood: central banks policies redundant - ANZ

Analysts at ANZ explained that the theme remains dominant in markets that monetary policy has effectively done as much as it can and that reflation, if required, should come via other means.

Key Quotes:

"But the reality is that interest rates remain at record low levels and in an environment of moderate growth and low inflation, which is supportive of higher yielding assets, APAC markets should continue to benefit – as long as the growth picture holds together."

"The latter continues to cause some nervousness as data remains mixed.

Overnight, ahead of the BoE tonight and Friday’s US labour market report, markets steadied. European bank stocks had a better day, rising 2.0% as the intensity of pessimism receded modestly."

At the time of writing, the S&P 500 was up 0.1% while earlier the Euro Stoxx lifted 0.1%, with the DAX up 0.3% and France’s CAC 40 down 0.2%.

Oil has lifted in recent hours (near-dated WTI +3.3% at USD40.85/bbl), while the yield on US 10-year Treasuries was down a touch at 1.54%. Gold spot is 0.4% lower at USD1,357.7/oz."