ECB prepares some sub-zero relief for wilting Europe

LONDON (Reuters) – Euro and bond yields wilted on Thursday as a slump in German business confidence piled the pressure on the European Central Bank to push interest rates even deeper into sub-zero territory later. With the chance of a ECB rate cut priced at about 50-50, the euro was at a two-month trough, German Bund yields were slipping back toward record lows and Europe’s main stock markets shuffled higher. New German data added to the call for ECB action as it showed business morale there had hit its lowest level since April 2013. The ripple effect saw neighboring Switzerland’s 50-year government bond yield go negative, meaning none of its bonds now offer buyers any interest. “The weak macro data this week means the ECB will be forced to act sooner than later,” said Daniel Lenz, a rates strategist at DZ Bank in Frankfurt. “The German economy is navigating troubled waters,” Ifo President Clemens Fuest added, saying companies there were increasingly concerned about the outlook for their businesses. Overnight it had been a happier story. Wall Street’s S&P 500 and Nasdaq had both hit record highs after reassuring comments from Texas Instruments about global chip demand blunted the impact of weak earnings from Boeing and Caterpillar. Facebook also announced forecast-beating revenues, sending its shares higher in extended trading after the closing bell.  Australia stole the glory as it ended near a 12-year peak after its central bank chief had stressed interest rates could continue to fall. “Lower rates are generally, in a traditional, mechanical way, good news for equity prices,” said Jim McCafferty, head of equity research, Asia ex-Japan, at Nomura. Sterling was broadly flat too at $1.2475, after falling for several sessions as market participants feared the looming possibility of a no-deal Brexit under Britain’s new prime minister, Boris Johnson. The advance came amid Middle East tensions and a big fall in weekly U.S. crude stocks, although the gains were curbed by a frail demand outlook and increasing signs of slowing global economic growth. Nick Bit: remember when your asshole broker and or banker and the talking heads laughed you out of the room when i suggest guaranteed to be their US government Treasuries? remember when the assholes told you interest rates are going higher… And i am sure you remember when they blew inflation bullshit and soon to be worthless gold and silver as a investment. IF you  listened to me last October you got 3.4% 10 year treasuries and 3.5% zeroes and are dancing a jig. As far as your asshole banker and broker they will soon be strung up from lamp posts a well deserved demise of the banker/broker whores.