Policy easing expectations are driving the financial markets now, with equities responding to speculations over the ECB, PBoC and the latest FOMC minutes, since the central banks’ easing over the past 2-3 months was slow paced and disappointing for many. However, a “warm up to easing” is now being seen: “This week’s FOMC minutes strongly suggest the Fed will ease policy next month, most likely through extended forward guidance language”, wrote BofA Merrill Lynch analyst Gustavo Reis, expecting further asset purchases by the Fed, lower RRR by the PBoC, and rate cuts by the ECB – “but direct support to Spain and Italy is unlikely unless the crisis deepens and they sign up for help.”.