31.10.2014 - Commodities and the End of QE
As boring as it sounds, I’m going to talk a bit about the end of QE today. Because it’s very important to how markets are going to behave over the next few months. As you probably know, overnight the US Federal Reserve voted to end its policy of quantitative easing. But it will still be reinvesting the interest payments from its $4 trillion plus portfolio and rolling over any maturing treasury securities, so it’s balance sheet will continue to grow, albeit much more slowly. On the surface, US markets didn’t seem too fussed about the end of an era. Shares sold off around the time of the Fed’s statement and then rallied towards the close. Probably a case of ‘algo’s going wild’ as automated high frequency traders tried to make sense of the Fed’s statement...............................................Full Article: Source
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