ECB will extend QE program at lower pace:

As widely expected, ECB announced it would extend its asset purchase program beyond March 2017. Plan will be extended for nine months through end of December 2017. This is more aggressive than market expectations for a six-month extension. Starting in April, monthly pace of asset purchases will be reduced from €80B to €60B. However, balance […]

Healthcare weaker on Trump comments:

Healthcare worst performer today. Biotech and pharma under outsized pressure. Renewed scrutiny surrounding drug pricing getting the blame. In interview with Time Magazine, Trump said that “I’m going to bring down drug prices. I don’t like what’s happened with drug prices.” Recall that in initial aftermath of the election, biotech and pharma rallied on thoughts […]

Economists not as upbeat on growth as Trump:

Despite all the positive sentiment surrounding the reflation trade, there has been a recent pickup in concerns that fiscal stimulus expectations may be somewhat overdone. Much of the discussion has revolved around the growth headwinds from demographics and sluggish productivity trends, though there has also been some focus on the complications of corporate tax reform […]

Italian Prime Minister Renzi to resign after referendum defeat; market fallout limited:

Italian Prime Minister Renzi announced he will tender his resignation later today after experiencing a heavy defeat in Sunday’s referendum. With most ballots counted, ~60% of Italians rejected Renzi’s electoral reform proposals, with a large turnout of 70%. Reform measure was intended to strip Senate of its powers and streamline the way parliament passes bills. […]

OPEC deal concerns:

While oil extending Wednesday’s ~9% rally, no shortage of skepticism surrounding OPEC’s deal to reduce production by 1.2M bpd to 32.5M bpd. Biggest area of concern not surprisingly revolves around compliance. Analysts noted that OPEC has a poor track record when it comes to compliance, with observed production cuts at 60-70% of announced cuts. Non-OPEC […]