Europe looks East and sees Goldilocks coming home

European traders could be excused if they look at Asian markets on Monday and think that it's a return to a Goldilocks-like environment for assets. Equities, EM currencies and commodities are broadly higher, with bonds doing their best to avoid rocking the boat.

The yen's best start since 1994 has asset managers grinning and leveraged funds continuing to pare back exposure. In Russia, the attention on a credit rating upgrade may soon give way to what comes next after Putin?

China equities are buoyed at the prospect of a long term Xi put, while in Japan equities could use more good economic surprises. Aussie bond futures have broken out of one trading range, although China bonds haven't yet decided which way to leap should they exit theirs.

Although the data schedule is light, ECB's Draghi addresses lawmakers in Brussels and Merkel's CDU holds a one-day conference to vote on a coalition with the SPD.

European indices will start the week in green territory. The German DAX will open a 20 points increase at a price of 12563 euros, the French CAC with a 3-point rise to a price of 5338 euros and the UKX UK with a 4 point increase of 7277 pounds. The moods of the European Union's economy remain positive. Although Mario Draghi has not given an exact date for QE termination, investors know that it is approaching. We remain positive about European benchmarks.

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov

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