If there were any lingering doubts that QE looks here to stay for some time yet, they were pretty much crushed by this morning’s US data. ADP payrolls were even worse than the street was expecting even more importantly, the previous month was revised down sharply. This makes it very difficult for the Fed to even think about starting to taper when it remains well short of achieving its employment mandate. Meanwhile, inflation numbers out of the US and Spain this morning have joined a trend of soft inflation numbers, particularly Spain which came in negative. Last week the Bank of Canada raised concern about below target inflation. The potential that deflation fears may grow and could push central banks to increase rather than cut stimulus again has ignited a rally in gold and silver this morning which confirms their recent breakouts. USD has been undermined again and knocked to the bottom of the majors pile, underperforming everything except JPY. Japan has a big QE program of its own running at the moment and this action suggests traders expect both of these programs to continue for some time to come. In other currency action, GBP, AUD and NZD are trying again to rebound from recent corrections. An RBNZ decision later today could keep the Kiwi Dollar active. NOK is outperforming CAD with Brent crude outperforming WTI ahead of today’s US storage numbers. Indices continue to rise on speculation of continued QE support from central banks. Markets could still be active around the decision as some may look to the news for a reason to take profits. We could also see significant action in individual stocks today off of earnings reports. All eyes are on Facebook’s report where the bar for expectations has been set a lot higher with the shares having nearly doubled since last quarter’s positive surprise. Corporate News Garmin $0.69 vs street $0.59 General Motors $0.96 vs street $0.94 ADP $0.68 vs street $0.66 Phillips 66 $0.87 vs street $0.93 Baidu $1.48 vs street $1.47 Western Union $0.39 vs street $0.36 Baytex Energy $0.70 vs street $0.54 Yamana Gold $0.09 vs street $0.08 Cameco adjusted EPS $0.53 vs street $0.18, raised revenue growth guidance to 30%-35% from 25%-30% Economic News Significant economic announcements released yesterday afternoon and overnight include: ADP payrolls 130K vs street 150K previous revised down to 145K from 166K US consumer prices 1.2% as expected vs previous 1.5% Spain GDP (1.2%) as expected up from (1.6%) last quarter Spain consumer prices (0.1%) vs street 0.3% Germany unemployment change 2K vs street 0K and previous 25K Germany unemployment rate 6.9% as expected Japan industrial production 5.4% vs street 5.5% Australia new home sales 6.4% vs previous 3.4% Economic reports due later today include: 9:00 am EDT Germany consumer prices street 1.4% 10:30 am EDT US crude oil inventories street 2.4 mmbbls 10:30 am EDT US gasoline inventories street (0.2 mmbbls) 2:00 pm EDT US interest rate decision street 0.25% no change 2:00 pm EDT US QE MBS purchases street $40B/month no change 2:00 pm EDT US QE Treasury purchases street $45B/month no change 4:00 pm EDT RBNZ interest rate decision street 2.50% no change