Currently, there is coordinated action between the Fed and the ECB. The action is jawboning. August is a tough month for the markets due to low liquidity. In order to get through this sensitive time, the ECB and the Fed have been leaking information so that we could get through the month without a market panic. So far, it is working.
This month, whenever markets begin to soften, we get “leaks” from the ECB, Fed muckety-mucks dropping hints in speeches and interviews and an occasional Hilsenrath article.
Nothing has changed. The economy still has a huge labor problem, Europe is still insolvent and China is not growing as quickly as we would like. The only thing keeping risk assets up is the promise of the next fix of cheap money whether it be in the form of QE from the Fed or bond buying from the ECB.