No QE from US halts equity surge

The Federal Reserve dampened the feeling that there was going to be a third round of economic stimulus yesterday, which would be QE3 (Quantitative Easing), which has put a halt to the very short term equity buying across the globe.

With few weapons left at it's disposal the chances are that QE is on the cards but at a time when markets need more of a lift than now. This could be when the Greek or Spanish situations deteriorate for example.

The Bank of England decided to take no further action also but the chances of concerted economic stimulous within the next two months are quite high. Without it equity markets look weak all round, living under the shadow of a possible Greek EU dropout and poor economic performance in Spain, that may eventually require assistance in the form of a bailout from the EU rescue fund to shore up their banking system