|Day's Range||389.93 - 392.29|
|52 Week Range||329.58 - 392.29|
The European Central Bank delves deep into its toolbox, cutting its deposit rate further into negative territory, launching a new round of monthly bond purchases and taking other steps to stimulate a flagging eurozone economy.
European Central Bank President Mario Draghi on Thursday responded to a tweet by U.S. President Donald Trump that said the central bank had introduced a sweeping new stimulus plan in a successful bid to weaken the euro versus the U.S. dollar. Asked about the tweet in a news conference following the ECB's policy decision, Draghi said: "We do not target the exchange rate, period." The euro fell versus the dollar, hitting a two-year low, after the ECB pushed its key interest rate further into negative territory, announced the relaunch of its bond-buying program and took other steps to stimulate a flagging eurozone economy. In a tweet, Trump said the ECB was "trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting U.S. exports." Trump repeated his criticism of the U.S. monetary policy makers, saying the Fed "sits, and sits, and sits. They get paid to borrow money, while we are paying interest!"
European stocks turned higher after the European Central Bank announced a series of measures to help the eurozone economy, including a 10 basis point decline in the deposit rate and a plan to restart bond purchases in November. The Stoxx Europe 600 rose 0.5%. The yield on the benchmark 10-year bund however weakened, down to -0.63%, a loss of 7 basis points on the day.
The European Central Bank on Thursday cut its deposit rate further into negative territory, decreasing it by 10 basis points to negative 0.5%, while also announcing it would restart its monthly bond-buying program as it attempts to lift a moribund eurozone economy. Among other measures, the ECB also extended its so-called forward guidance on rates, saying they wold remain at "present or lower levels" until the inflation outlook "robustly" converges with the bank's target inflation rate of near but just below 2%. Previously, the ECB said it intended rates to remain at present or lower levels through the first half of next year. The ECB also made adjustments to its targeted long-term refinancing operations to further encourage lending and, in a bid to ease pressure on bank profitability from a lower deposit rate, announced it would introduce a tiered system that would exempt a chunk of excess reserves parked by banks with the ECB from the negative rate. ECB President Mario Draghi's news conference is scheduled to begin at 8:30 a.m. Eastern.
If there’s one thing that observers agree on with respect to Thursday’s European Central Bank meeting, it’s that the central bank will announcing a series of loosening measures that won’t really make much of a difference to the struggling European economy.
It doesn’t get much bigger than the nonfarm payrolls report and a speech from a Fed chairman. The Labor Department reported that U.S. jobs growth slowed to 130,000 in August and the unemployment rate stayed at 3.7%, and the prior two months were revised lower, data that will reignite concerns about the global economy. “Market participants have been missing gold’s upswings and are likely now expressing this through silver and, more recently, platinum (PL00) as well,” said Joni Teves, a strategist at UBS.
Hong Kong leader Carrie Lam announced the withdrawal of the extradition bill that has sparked the nearly three-month old protests, a move that triggered gains for stocks across the globe.
Investing.com -- Europe's stock markets surged in early trading and Hong Kong's rose by the most since 2011 after a report claiming that the head of Hong Kong's legislative assembly would formally withdraw a controversial bill which sparked three months of protests.
A spokesman for China’s commerce ministry was quoted as saying the country would not immediately respond to the latest tariffs imposed on them, which boosted U.S. stock futures and European stocks.
Norway's central bank has advised its Government Pension Fund Global to shift from European developed markets into North American ones. "We are of the opinion, however, that the geographical distribution should be adjusted further towards float-adjusted market weights by increasing the weight of equities in North America and reducing the weight of equities in European developed markets. The gap to market weights will then be smaller than today," the bank said.
In a see-saw session, European stocks ended lower on Friday, as relief that the Federal Reserve would consider cutting interest rates again was offset by a new escalation in the U.S.-China trade war.
The European economy saw a slight recovery in August from weak demand caused by trade tensions, according to data released Thursday.
Eurostat said euro-area inflation in July slowed to 1% over the last 12 months, down from 1.3% in June and an initial estimate of 1.1%. That was the lower than the 1.1% expected in a FactSet-compiled economist forecast and the slowest growth since Nov. 2016.
U.S. stock futures moved off highs and Europe stocks turned lower as wire services reported that China's finance ministry said it would take countermeasures to the latest tariffs. President Trump on Tuesday had backed off part of the plan to slap 10% tariffs on $300 billion of Chinese goods, delaying some duties until December.
Germany’s gross domestic product shrank 0.1% in the second quarter of the year, confirming the lackluster performance of the German economy hit by rising trade fears, the slowdown of Chinese imports and home-grown industrial and economic problems.
The eurozone economy slowed to a 0.2% growth rate in the second quarter, according to a flash estimate published by Eurostat, which also reported a 1.6% decline in June industrial production. Compared to a year ago, the eurozone economy grew 1.1%.
The German ZEW indicator of economic sentiment for Germany slumped to a -44.1 reading in August, which is the worst level since Dec. 2011 and down from -24.5 in July. Economists polled by Factset expected a -28 reading. The current situation index also fell, to -13.5, which is the worst since May 2010.
European stocks traded lower for a third straight session, amid continued concerns about the fallout from the U.S.-China trade war. Banks led the decliners, with Deutsche Bank down over 2% and Danske Bank falling 1.7%. Notable movers included Henkel , down nearly 5% after cutting its sales outlook, while travel group Tui rose after holding its outlook. U.S. stock futures pointed lower as well.
Italian stocks dropped sharply in early trade on Friday as Matteo Salvini, leader of Italy's League party, called for a snap election. The FTSE MIB dripped 1.6% in Milan while the broader Stoxx Europe 600 fell 0.2%. U.S. stock futures also were lower.
European markets climbed on Thursday after a surprise boost in Chinese exports lifted global sentiment and bond yields moved off record lows.
Led by pharmaceuticals including Novo Nordisk and Merck KGaA , European stocks traded higher on Thursday, with the Stoxx 600 Europe rising 0.8% in early action. U.S. stocks finished off lows on Wednesday, and the markets reacted calmly to the PBOC setting the reference rate on the yuan above 7 for the first time since 2008.