From Reuters via ZeroHedge:
MARK CLIFFE, CHIEF ECONOMIST, ING GROUP
"It feeds into the idea that policymakers are at least beginning to
address the problem. There was a very dark mood developing at the back
end of last week. With the dire scenarios doing the rounds the last few
days, it's all the more important they step in with aggressive measures
to support the banking system and show they're beginning to confront the
financing problems of the sovereigns as well."
TONY NYMAN, ANALYST AT INFORMA GLOBAL MARKETS
"From a currency perspective the move has given risk currencies real
lift. The liquidity injection means the world's most liquid currency the
Dollar is less required near-term and is currently being broadly sold.
"Such an operation usually gives pairs such as Eur/Usd, Aud/usd a
fairly lasting lift. It is an emergency measure and of course will do
very little to aid Greek and other EMU nations debt woes further out."
MARK THOMAS, HEAD OF ENERGY EUROPE, MAREX SPECTRON IN LONDON
"Initial reaction was bullish. The announcement caught markets by
surprise and prompted short covering in dollar-euro and a firming in oil
price. It is supportive. Difficult to predict for how long."
SILVIO PERUZZO, RBS ECONOMIST, LONDON
"This is something that is very welcome. This will not solve all
deep-based funding problems which are due to the sovereign debt crisis.
But there is an issue with dollar liquidity, especially with foreign
currency and this measure addresses that. This helps the margin and also
shows that central banks remain at unease with what certainly is very
significant distress.
"We were expecting the ECB to deliver these measures next week ...
the ECB has more scope to go, and we expect the ECB to announce more
measures in next policy meeting (on Dec. 8). Now that is has done the
swapline, there is scope to reduce the cost of liquidity banks get from
the ECB regardless of the currency, and that goes via interest rates.
"Doing more on the collateral side is probably the second step. The
ECB is helping the banking system while sovereigns do their homework."...MORE
And the winner is:
SAL CATRINI, A MANAGING DIRECTOR FOR EQUITIES AT CANTOR FITZGERALD & CO IN NEW YORK
"Not a complete surprise. People were expecting China to do something
before the end of the year, and given the stresses in the market there
has been talk about the Fed backstopping what's going on in Europe.
Desperate times and all.
"The move in (U.S. stock) futures is justified. Whether this
solves our long-term problems remains to be seen, but when you flood the
market with liquidity, risk assets go much higher."
'Struth
