The ECB loaned 523 euro area banks 489B Euros ($645B), almost double the median estimate of 293B Euros from a Bloomberg survey. The ECB also loaned $33B for 14 days in a dollar offering, up from $5.1B just a week ago. While the 489B euro take up shows banks’ “liquidity needs are being amply met,” says Jonathan Loynes, chief European economist at Capital Economics, he remains skeptical it will ease the sovereign debt crisis.
MBA Mortgage applications for the period ending Dec. 16 came in at -2.6% versus a 4.1% estimate. Although this indicator is volatile, it indicates purchases and refinancing have slowed- proving that the lowest borrowing costs on record are not enough to spur demand in the housing markets.
The Bank of Japan (BOJ) downgraded their outlook of the economy for the second month in a row, but chose not to boost monetary stimulus- citing easy domestic financial conditions. Improvement in business sentiment has been sluggish, and exports & production have remained “more or less flat.”
At 7:50am CST, S&P futures were down -0.138%, the Euro Stoxx 50 is down -0.62%, and the Nikkei 225 has closed up +1.48%.
I sure wish politicians in Europe (heck- here at home too) would pay attention to the quote I’m using this morning. Have a great day folks- thanks for reading.