Source: Zero Hedge

“Something odd is taking place in the market today: the world’s biggest central bank – whose balance sheet is 40.5% of Europe’s GDP – unveiled massive monetary easing in the form of new carry-trade facilitating bank loans and an extended NIRP period and… stocks tumbled, a reaction which the market has rarely even seen before in the context of a central bank unveiling a surprisingly dovish move….Dow futures immediately tumbled 250 points from its post-Draghi highs….Why the unexpected reaction, one which suggests central banks may now be losing control over markets having pushed on a string just one attempt to push stocks too far, a reaction which a trader at a major trading desk laid out simply as ‘this is bad.’….Meanwhile, the broader picture is even more bank adverse due to the extension of Europe’s NIRP period, which as Deutsche Bank made very clear in the past 5 years, has crushed bank earnings: ‘The interpretation of today’s measures is negative as low rates for longer hurts a lot banks’ margins,’ said Nuria Alvarez, bank analyst at Renta 4.”

The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and FX involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.