 The Bank of Japan acted by deciding not to act and the pumped up Nikkei index went into a no-stive overnight dropping by over 3%. All those front-running in the expectation that the Bank of Japan will act by increasing QE measures have been disappointed. The Fed basically also did nothing other than drop in the line about global risks out of its communique. Nothing happened there yesterday. The price of print crude oil rose above $47 yesterday, but this rally in the end could prove to be self-defeating. Hundreds of already drilled but inactive fracking wells are just waiting to be energized. Underfunded oil companies trying to pay down their debt need cash flows more than anything else. Pioneer, one oil company out of the United States just said that they plan to activate 5 to 10 fracking wells where oil prices to rise to $50. Some estimates are even out there claiming that within a short time frame of only a few weeks there could be half a million barrels of daily oil production coming on stream out of the United States. So with every dollar increase in the price of oil there is a growing risk that there will be another flood of oil coming from the U.S. fracking industry. If you remember we had this situation last year when the price of oil temporarily rose, the U.S. oil industry reacted by strongly increasing their production which led to another sudden drop of oil prices then below $30. Meanwhile there is Saudi Arabia coming out of their presenting their vision of a kingdom without any oil dependency. Saudi Arabia right now generates around 80% of its tax revenues from oil. The Saudi prince is quoted by the press saying that he can imagine Saudi Arabia living without oil by the year 2020. What a turn of an economic model that would be. China will be able to learn from Riyadh in the end. While the goals of the Saudi prince might be a little over-optimistic, Riyadh is pushing ahead with less than 5% of the state oil company Aramco which is a thorn in the flesh of Iran which is trying to acquire as much foreign oil investment dollars as possible to improve their own oil industry. Angela Merkel, the German chancellor, meanwhile saying that the ECB should return to more normal monetary policy and to make that possible there should be a closer unity in the European Union but this all sounds very much like wishful thinking at least right now. The risk of the UK leaving the EU is rising. European stock markets are still meaningfully decoupled from world markets and inflation rates are too low. In the U.S. a nomination of Donald Trump is getting ever more probable and so one might suppose that after a period of strong monetary influence on world markets there will be even more influence coming from traditional politics. Everyone who is nurturing a war chest is in my opinion in a good situation. The prices crash the next time and there will be volatility going forward. One could enter the market because it is almost clear that central banks at least in my opinion will ever try to kick the can down the road even further down the road every time they try to experiment with new monetary measures. Remember the price when you buy a stock the price is what you pay for a stock the value is what you get. Everyone who knows about trading will be able to exploit over and under valuations opportunistically there will be a lot of chances to do so in the coming months and quarters. I welcome you ladies and gentlemen to this new format which has been quite a success in Germany, Austria and Switzerland and as you can hear I'm a German guy so pardon my accent. My name is Johan Stanzler I am Chief Market Analyst in Germany and Austria for CMC Markets and I'd like to thank the London team of CMC Markets for giving me the opportunity to do this video. If you'd like I'll be here for you on a daily basis from now on with this format called CMC Espresso. Have a nice day!