OVERNIGHT MARKETS ROUND UP – 18/12/13

Will they, won’t they, tapering is likely the only thing on most investors mind today ahead of the FOMC’s decision on whether to finally taper the unprecedented $85 billion monthly bond buying scheme. Investor’s recent activity would suggest an initial confidence in no tapering with US indices starting strongly yesterday, however fear and second guessing appeared to drive the markets down towards the close.  With US futures up today, Asian stocks rising for a second day and Euro bourses expected to open up it would suggest investors are again attempting to position themselves for no taper. If the last few months are anything to go buy expect huge volatility today as investors attempt to get ahead of the Fed. 

In other US new the bi-partisan budget deal has passed a crucial senate vote relatively, which could provide a genuine boost to the US bourses, as opposed to the speculators driving prices up.  The deal will help restore faith in the workings of bi-partisan politics after the catastrophic failure only months ago. 

European markets already expected to open up ahead of the tapering decision received a further boost when a bailout backstop was agreed.  This agreement will act as guidelines for the new bank rescue system hopefully creating more stability and certainty within the Eurozone. 

Further bad news for the digital currency Bitcoin today as China bans new deposits landing a blow to hopes of recognition as a legitimate form of currency.  The currency had seen a recent surge in price after receiving endorsements from tesla to Richard Branson breaching the $1000 mark only weeks ago.  With Denmark drafting rules to protect against the risk of Bitcoin and regulators warning against its use, it has been a bad few days for the currency with its price almost halving.