Who would be a bear at Christmas? Yesterday’s 10bln taper was just about as good a present as anyone short the markets could have hoped for, and they would have been counting their dollars for a mere two minutes before the market opened the throttle for a spectacular reversal on a subtle change to forward guidance. Markets seem to love ambiguity from the FED, no preset course for the speed of a taper and a note that interest rates will now stay accommodative “well past” target unemployment especially if inflation is below 2%. Clear as mud, and a perfect set-up for a universal scratching of heads, shrug of the shoulders and BUY. Why?....because everyone else is doing it. So they all hop on to the Santa rally sleigh and hope to ride it all the way through Christmas. One thing is for sure this market is firmly back in the hands of the bulls, and any turnaround is only going to come when they think they may have pushed too far, there simply aren’t any bears left to fight the battle, with the remaining few sent back to hibernation by yesterday’s reversal. The FED clearly think the market is coming out of re-hab and able to stand on its own two feet on a lower dose, which is surely a good omen for the economy and equities in the long run, but does this signal that we might be back to a rational market reaction to positive economic sentiment or were the markets just destined to go up on any outcome? Putting the overwhelming impact of last night’s release aside, the UK is weaker than its European peers this morning following a slight miss from retail sales and resource stocks lagging a bit on a stronger dollar, with Randgold resources and African Barrick gold towards the bottom of the pile. Astrazenica is one stock moving higher this morning after agreeing to buy Bristol-Myres Squibb’s stake in their Diabetes joint venture. They will pay $2.7 bln with a potential for another $1.4 in future compensation. Fellow drug maker GSK followed suit after the approval of Anoro Ellipta, a treatment for obstructive pulmonary disease. One stock worth a mention on the Continent was Saab, flying over 23% after winning a contract to supply 36 fighter jets to Brazil, with Boeing tipped to have lost out on the backlash to the U.S spying program. CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.