Economic Wrap: ECB extended QE, awaiting China CPI - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"US jobless claims fell from 268k to 258k (255k expected) and remain at tight levels.

The ECB left rates unchanged, extended the QE program by nine months (vs market expectations of six), and reduced monthly asset purchases from EUR 80bn to EUR 60 bln. The range of eligible bonds was widened by dropping the deposit rate floor and lowering duration from 2yrs to 1yr. The central bank said in its statement that QE will be increased if the outlook turns less favourable. Draghi's main message today was that the ECB will remain active in markets for the foreseeable future and can still step up its support again if and when market and economic conditions warrant such a move.

Economic Event Risks Today

Australian lending data is unlikely to ruffle markets too much, but China’s CPI and PPI data will be closely watched. The US has wholesale trade and consumer confidence (Michigan Univ)."