U.S. markets rebounded strongly yesterday after three bearish sessions that had raised fears of the start of a major stock market pullback. We have reached stage 2 of any stock market mini-panic phase: the one where bear markets have 50 macroeconomic, technical and fundamental arguments to explain that yes, the decline will resume. And the one where bulls have 50 macroeconomic, technical and fundamental arguments to explain that yes, the rise will resume.

In Europe, the British Prime Minister is causing dismay and consternation among European leaders after introducing legislation that would deliberately violate international law. The bill was presented yesterday in the House of Commons would allow the UK to revise part of the Brexit agreement on Northern Ireland despite international law. British MPs will consider the bill at second reading. The date for that has not yet been announced. However, the European Union is very critical of the bill and could take the UK to court. Meanwhile, Nancy Pelosy, said the United Kingdom could forget about a free trade agreement with the United States if the pact with Northern Ireland is broken.

The ECB speech is due later today. At the time of writing, the European Central Bank is expected to maintain its current policy. However, economists and investors expect the ECB to announce an increase in the Pandemic Emergency Purchase Program (PEPP) by 500 billion euros before the end of the year, with buybacks that could run until the end of next year.