Photo: Wikimedia Commons
We’re pretty sure that the news is about to explode with wild headlines soon, since it’s gotten bizarrely quiet lately.Deutsche Bank’s Jim Reid has the tally:
It has been a pretty dull last 24 hours for market direction and volumes as investors are probably awaiting clarity on Greece before committing at the moment. Indeed yesterday saw S&P 500 Futures trading volumes drop to the lowest level this year, or around 30% below its 20-day moving average. We were at activity levels normally associated with holidays. Perhaps with the New York Giants winning the Superbowl, Manhattan was too busy celebrating. As an England cricket and Liverpool fan I wasn’t celebrating much yesterday!. Given the lack of any major news flow, the RBA’s unexpected decision overnight to leave its key rate unchanged at 4.25% was perhaps the biggest surprise for the market over the last 24 hours. The market was expecting a rate cut with 24 out of 27 economists polled by Bloomberg predicting 25bp off rates.
When a non-rate cut is the biggest news: watch out.