Market re-cap: U.S. was closed, focus on Europe and ECB - ANZ

Analysts at ANZ explained that US markets were closed for Martin Luther King Day, leaving activity naturally subdued.

Key Quotes:

"Elsewhere, European bourses were offered as there are some expectations that Thursday’s central bank meeting may be a bit more balanced with some looking for hints at when the ECB may start to taper QE. There has also been chatter in the market about peripheral bond yields (particularly Portuguese yields) going higher as the ECB approaches holding limits on Portuguese bonds. With Euro area core inflation at 0.9% y/y and an unemployment rate of 9.8% – which indicates a significant negative output gap – we think that it is far too early for any talk of tightening. But in any case, markets are fatigued with QE and have seen what happens when it has ended elsewhere. Oil was mildly higher (WTI at ~$52.60/bbl) and gold was firmer (at ~$1202 oz.), but the overall CRB index was a tad softer, down ~0.2% at 6.30am NZT."