We're Experiencing Market Tranquility

Markets aren't doing much early in the European trading session.

England's FTSE 100 is up 0.3%.

France's CAC 40 is down 0.2%.

Germany's DAX is flat.

Spain's IBEX 35 is down 0.5%.

Italy's FTSE MIB is flat.

Asian market's followed the U.S. sharply higher in overnight trading. Japan's Nikkei jumped 2.9%. Australia's S&P/ASX climbed 1.6%.

After a month of selling in the stock market, these upwardly biased moves are welcome.

"This double play – of stronger data and less anxiety about the policy-driven liquidity paradigm – is essential for maintaining market tranquility," said PIMCO's Mohamed El-Erian earlier this week.  "The hope is that, having re-priced in a rather disorderly manner, markets can regain their footing. The valid worry is that market tranquility may just invite selling by those that were sidelined in prior trading sessions by both price action and liquidity shortfalls."

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