The Bank of Canada is lowering its target for the overnight rate by 0.25% to 0.75%. This decision is in response to the recent sharp drop in oil prices. Oil's sharp decline in the past six months is expected to boost global economic growth, especially in the United States, says the bank. Persistent headwinds from deleveraging and lingering uncertainty will influence the extent to which some oil-importing countries benefit from lower prices.

The oil price shock is occurring against a backdrop of solid and more broadly-based growth in Canada in recent quarters. Outside the energy sector, we are beginning to see the anticipated sequence of increased foreign demand, stronger exports, improved business confidence and investment, and employment growth

Two weeks ago the ECB launched an aggressive €1.1-trillion QE program in a bid to reverse the Eurozone's dismal economic fortunes.We know QE will depreciate the currency, and it clearly is [doing so]. It will [also] keep interest rates artificially low for a period.  It's not a no-brainer that European equities will get the same boost U.S. stocks got from the Fed's QE program.

There's a common misperception that European equities have been cheap underperformers for some time. But ever since ECB president Mario Draghi pronounced in July, 2012 that he'd do "whatever it takes" to save the continent's single currency, the European market's gone up about 70%,