KLCI up about 10p as ECB cut interest rate and Greece scrap referendum

1. The new European Central Bank President Mario Draghi has unexpectedly cut interest rate from 1.50% to 1.25%. It is also reported that he prefer to use interest rates than the printing press to promote growth in Europe
2. After being pressured by Germany and France, Greek Prime Minister George Papandreou finally cancelled his earlier plan to call a referendum on the latest bailout package

View: These news should be positive in the short term but may also be interpreted as signal that Europe is almost confirm will go into recession. ECB President said Europe is heading to "mild recession". He is good at managing expectation, but mild recession is still recession. Ahead of the long weekend, magnitude of KLCI increase may not be long lived.