A crazy last 24 hours has put the market inches away from a record: Here’s what happened

Several market moving events unfolded between the close of U.S. stock markets on Wednesday and the open on Thursday. As a result, the Dow Jones Industrial Average and the S&P 500 both came close to record highs on Thursday. The tariffs are set to increase to 30% from 25% on about $250 billion worth of Chinese goods. ECB lowers ratesOn Thursday morning the European Central Bank (ECB) announced a cut to its deposit rates by 10 basis points, to negative 0.5%. The Consumer Price Index, which is used


Several market moving events unfolded between the close of U.S. stock markets on Wednesday and the open on Thursday. As a result, the Dow Jones Industrial Average and the S&P 500 both came close to record highs on Thursday. The tariffs are set to increase to 30% from 25% on about $250 billion worth of Chinese goods. ECB lowers ratesOn Thursday morning the European Central Bank (ECB) announced a cut to its deposit rates by 10 basis points, to negative 0.5%. The Consumer Price Index, which is used
A crazy last 24 hours has put the market inches away from a record: Here’s what happened Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: michael sheetz
Keywords: news, cnbc, companies, away, announced, increase, president, market, vice, hours, inches, crazy, stock, rose, record, inflation, heres, tariffs, happened, ecb, investors


A crazy last 24 hours has put the market inches away from a record: Here's what happened

Several market moving events unfolded between the close of U.S. stock markets on Wednesday and the open on Thursday. As a result, the Dow Jones Industrial Average and the S&P 500 both came close to record highs on Thursday. Here’s what investors need to know.

Delayed tariffs

Stock futures climbed Wednesday evening after President Donald Trump announced he would be delaying the planned increase of tariffs on Chinese goods by 15 days, as a “gesture of good will.” The tariffs are set to increase to 30% from 25% on about $250 billion worth of Chinese goods. Treasury Secretary Steven Mnuchin told CNBC on Thursday morning that the president “could do a deal any time” with China but won’t until “it’s a good deal.” “The president delayed it because of a request from the vice premier,” Mnuchin added. He clarified that China’s Vice Premier Liu He made the request because Oct. 1 is the 70th anniversary of the establishment of the People’s Republic of China and said raising the tariffs on that day “caused them grave concern on the symbolism.”

ECB lowers rates

On Thursday morning the European Central Bank (ECB) announced a cut to its deposit rates by 10 basis points, to negative 0.5%. The ECB also announced a substantial bond-buying program of 20 billion euros per month, as a part of its quantitative easing (QE) initiative. The Euro initially fell to its lowest level against the dollar in nearly two weeks but later rebounded, sitting at around $1.104, as foreign exchange investors remain uneasy about whether the ECB’s policies will successfully increase inflation. Additionally, bond yields in the Euro zone dropped, with Germany’s benchmark 10-year bond yield falling to negative 0.64%. Investors were pleased the ECB was trying quantitative easing again, hoping the new program would give the global economy a jolt.

Tame inflation

About an hour before U.S. stock markets opened on Thursday, the Labor Department reported that consumer prices slowed last month. The Consumer Price Index, which is used as a measure of inflation, rose only slightly in August. However, the core CPI measurement rose to 2.4% year-over-year – the highest level since 2008. The tame inflation was likely to keep the Federal Reserve on track to cut interest rates next week.

Stock indexes near all time highs


Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: michael sheetz
Keywords: news, cnbc, companies, away, announced, increase, president, market, vice, hours, inches, crazy, stock, rose, record, inflation, heres, tariffs, happened, ecb, investors


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Stocks in Asia mixed as investors await ECB interest rate decision; Apple suppliers mostly jump

Shares in Asia were mixed on Wednesday as investors awaited the European central bank’s interest rate decision later in the week. Mainland Chinese shares were lower on the day, with the Shenzhen component declining 0.935% to about 1,671.54 and the Shenzhen composite down 1.12% to 9,853.72. Meanwhile, Hong Kong’s Hang Seng index rose 1.51%, as of its final hour of trading. Elsewhere in Japan, the Nikkei 225 rose 0.96% to close at 21,597.76 while the Topix index gained 1.65% on the day to 1,583.66


Shares in Asia were mixed on Wednesday as investors awaited the European central bank’s interest rate decision later in the week. Mainland Chinese shares were lower on the day, with the Shenzhen component declining 0.935% to about 1,671.54 and the Shenzhen composite down 1.12% to 9,853.72. Meanwhile, Hong Kong’s Hang Seng index rose 1.51%, as of its final hour of trading. Elsewhere in Japan, the Nikkei 225 rose 0.96% to close at 21,597.76 while the Topix index gained 1.65% on the day to 1,583.66
Stocks in Asia mixed as investors await ECB interest rate decision; Apple suppliers mostly jump Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, decision, tariffs, shares, rose, asia, index, ecb, shenzhen, investors, rate, day, south, china, mixed, suppliers, interest, jump, await, composite


Stocks in Asia mixed as investors await ECB interest rate decision; Apple suppliers mostly jump

Shares in Asia were mixed on Wednesday as investors awaited the European central bank’s interest rate decision later in the week.

Mainland Chinese shares were lower on the day, with the Shenzhen component declining 0.935% to about 1,671.54 and the Shenzhen composite down 1.12% to 9,853.72. The Shanghai composite slipped 0.41% to around 3,008.81. Meanwhile, Hong Kong’s Hang Seng index rose 1.51%, as of its final hour of trading.

Elsewhere in Japan, the Nikkei 225 rose 0.96% to close at 21,597.76 while the Topix index gained 1.65% on the day to 1,583.66. South Korea’s Kospi closed 0.84% higher at 2,049.20. Over in Australia, the S&P/ASX 200 advanced 0.36% to end its trading day at 6,638.00.

Overall, the MSCI Asia ex-Japan index rose 0.64%.

On the trade front, China’s Ministry of Finance announced that 16 American products will be exempted from additional tariffs. On Tuesday, the South China Morning Post reported that China has offered to increase U.S. agricultural purchases in exchange for a delay in tariffs and easing of a supply ban against telecommunications giant Huawei Technologies.


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, decision, tariffs, shares, rose, asia, index, ecb, shenzhen, investors, rate, day, south, china, mixed, suppliers, interest, jump, await, composite


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Analysts divided on ECB stimulus prospects amid conflicting tones from officials

Analysts are split over what to expect from the European Central Bank (ECB) on Thursday, after central bank officials moved to downplay market expectations of immediate and substantial quantitative easing (QE). In June, ECB President Mario Draghi confirmed he was exploring measures to boost the 19-member euro zone economy, citing persistent low inflation and sluggish growth. However, ECB officials have dampened hopes of a substantial monetary stimulus package of late. French central bank Preside


Analysts are split over what to expect from the European Central Bank (ECB) on Thursday, after central bank officials moved to downplay market expectations of immediate and substantial quantitative easing (QE). In June, ECB President Mario Draghi confirmed he was exploring measures to boost the 19-member euro zone economy, citing persistent low inflation and sluggish growth. However, ECB officials have dampened hopes of a substantial monetary stimulus package of late. French central bank Preside
Analysts divided on ECB stimulus prospects amid conflicting tones from officials Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: elliot smith
Keywords: news, cnbc, companies, bank, ecb, prospects, singh, stimulus, round, central, amid, qe2, officials, euro, analysts, tones, conflicting, president, divided


Analysts divided on ECB stimulus prospects amid conflicting tones from officials

Analysts are split over what to expect from the European Central Bank (ECB) on Thursday, after central bank officials moved to downplay market expectations of immediate and substantial quantitative easing (QE). In June, ECB President Mario Draghi confirmed he was exploring measures to boost the 19-member euro zone economy, citing persistent low inflation and sluggish growth. These have been mooted to include a change in forward guidance, rate cuts, a tiered deposit rate and recommencing asset purchases, or QE. However, ECB officials have dampened hopes of a substantial monetary stimulus package of late. French central bank President Francois Villeroy de Galhau and Estonian central bank President Madis Muller are the latest to cast doubt on the scale of intervention. They join Sabine Lautenschlager, a member of the ECB executive board, Klaas Knot, president of the Dutch central bank, and Bundesbank President Jens Weidmann, who have all signaled skepticism about relaunching QE. The thrust of their comments seemed to contradict both Draghi and Ollie Rehn, president of the Bank of Finland, who recently called for an “impactful and significant” stimulus package.

‘Puzzling’ change of tone

Shweta Singh, managing director of global macro at TS Lombard, said in a note Wednesday that the shift in ECB communications was “puzzling.” With Italy’s economy stagnating in the second quarter while Germany, the euro area’s largest economy, contracting and indicating further weakness to come, Singh suggested there was “little room for optimism on the economic outlook.” “Manufacturing remains in the doldrums and the weakness is spreading quite rapidly to services. Businesses are revising lower their hiring and expansion plans, citing weak demand as a key constraint on production,” Singh said. The central bank’s QE program has long proven controversial in Germany, where the country’s constitutional court is embroiled in an ongoing case centering on whether the ECB’s bond-buying constitutes so-called “monetary financing,” which is prohibited under EU law. Singh also highlighted that a combination of a new round of tit-for-tat tariffs in the U.S.-China trade war, a strong dollar weighing on global financing conditions and dampening demand for euro area exports, and the chaos surrounding Brexit does little to ease these concerns. Without a great deal of support from fiscal policy, she suggested the ECB will have to do the heavy lifting, but the effectiveness of a fresh round of stimulus would depend on what form it takes.

“The marginal benefits of cutting rates that are already negative are limited at best, even if such a move is accompanied by a new round of cheaper long-term refinancing operations (TLTROs) and a tiering of deposit rates,” Singh said. She added that on the other hand, a second round of quantitative easing by the ECB (QE2) could provide a more meaningful boost to monetary and financing conditions. However, this would still have a milder impact than QE1, when “borrowing costs were higher, fragmentation across the euro area was severe and domestic risks were far greater.” “Crucially, there may be much less scope this time for the euro to edge lower and thus boost inflation expectations, while the pool of eligible assets that the ECB can buy has shrunk since QE1 was launched.” TS Lombard researchers expect that QE2 could be around a third of the size of the 2.6 trillion euros ($2.88 trillion) injected in QE1. However, they projected that if the ECB was to loosen some of its self-imposed constraints on asset purchases, such as raising issuer limits from 33% to 50%, it could buy up to 1.5 trillion euros in government, supranational and non-bank private sector debt. Singh’s team still expects a package of stimulus on Thursday, but cautioned that cutting rates without QE2 would be a “recipe for disaster.”

Go big or go home?

For the ECB to close a 0.5% inflation gap, at least 600 billion euros of QE2 would be needed, according to Pictet senior European economist Frederik Ducrozet. In a note published Thursday, Ducrozet suggested that if anything, the decreasing marginal returns of QE and the risk of a “de-anchoring of inflation expectations” call for an even more aggressive program. “Our initial expectation was for QE2 to be set at 50 billion euros per month over 12 months,” Ducrozet said. “A compromise could take the form of a smaller quantum of purchases for longer—say 30 billion over 18 months, 25 billion over two years, or even open-ended asset purchases linked to a state-contingent forward guidance. Either way, we expect the issuer limits to be raised from 33% to 50%.”


Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: elliot smith
Keywords: news, cnbc, companies, bank, ecb, prospects, singh, stimulus, round, central, amid, qe2, officials, euro, analysts, tones, conflicting, president, divided


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Euro remains subdued before key ECB meeting this week

Leveraged funds have increased their net short positions on the euro, expecting the ECB to cut interest rates, announce it will buy government bonds or other European assets, or both. “ECB watchers are confident there could be a 20 bps cut and so the potential surprise (for the euro) on the rate cut isn’t that big,” said Esther Maria Reichelt, a Commerzbank analyst. “It’s far more difficult to assess what kind of unconventional measures” the ECB could use to stimulate the euro zone economy, whic


Leveraged funds have increased their net short positions on the euro, expecting the ECB to cut interest rates, announce it will buy government bonds or other European assets, or both. “ECB watchers are confident there could be a 20 bps cut and so the potential surprise (for the euro) on the rate cut isn’t that big,” said Esther Maria Reichelt, a Commerzbank analyst. “It’s far more difficult to assess what kind of unconventional measures” the ECB could use to stimulate the euro zone economy, whic
Euro remains subdued before key ECB meeting this week Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-09
Keywords: news, cnbc, companies, remains, european, rate, cut, key, traders, ecb, subdued, far, dollar, sept, meeting, positions, euro, week


Euro remains subdued before key ECB meeting this week

The euro fell to a five-day low against the dollar Monday as investors remained convinced the European Central Bank would introduce a new wave of monetary policy stimulus at its meeting on Thursday.

Leveraged funds have increased their net short positions on the euro, expecting the ECB to cut interest rates, announce it will buy government bonds or other European assets, or both.

Other global central banks are already loosening monetary policy, including the People’s Bank of China, which on Friday cut the amount of cash that banks must hold as reserves.

“ECB watchers are confident there could be a 20 bps cut and so the potential surprise (for the euro) on the rate cut isn’t that big,” said Esther Maria Reichelt, a Commerzbank analyst.

“It’s far more difficult to assess what kind of unconventional measures” the ECB could use to stimulate the euro zone economy, which “could have a far bigger impact on the euro,” Reichelt said.

Money markets are pricing in a 72% chance the ECB will cut rates by 20 basis points on Thursday, lower expectations than last week. Some analysts suggest the ECB will start buying euro zone equities, not just government bonds, in a new wave of quantitative easing.

The euro was neutral against the dollar in early London trade at $1.1033. It slipped to $1.10155 overnight, its weakest since Sept. 4.

Hedge funds have added more short euro positions, taking the amount of contracts to $6.74 billion in the week to Sept. 3, the highest in a month, though positions were not as big as in April.

The dollar index, which tracks the U.S. currency against six other currencies, was flat at 98.438. The dollar was confined to a narrow range against the yen as traders weighed the prospect of U.S. rate cuts against their demand for safe-haven assets. Dollar/yen was last flat at 106.93.

The Federal Reserve will continue to act “as appropriate” to sustain the U.S. economic expansion, Fed Chair Jerome Powell said Friday in Zurich, bolstering expectations for a rate cut at the Fed’s meeting on Sept. 18.

Elsewhere, the Australian dollar, a proxy for risk, jumped to a five-week high of 0.68625 against the U.S. dollar as traders became more optimistic that China would withstand the impact of trade disputes with the United States, after its central bank cut its reserve rate ratio.

The New Zealand dollar held onto gains, trading at 0.6419 against the U.S. dollar, not far from the four-week high of 0.6444 it reached on Friday.

Sterling was down 0.4% at $1.2235 as traders waited to see whether the British parliament would vote to hold an early general election before the Oct. 31 Brexit deadline. If a snap election were held and the Conservative Party won, it could scrap recent legislation to extend Britain’s exit from the European Union for a third time. Against the euro, sterling was 0.5% lower at 90.13.


Company: cnbc, Activity: cnbc, Date: 2019-09-09
Keywords: news, cnbc, companies, remains, european, rate, cut, key, traders, ecb, subdued, far, dollar, sept, meeting, positions, euro, week


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Euro gains on hopes of German fiscal stimulus

The euro rose on Monday after a report that Germany may boost fiscal stimulus increased hopes that governments will act to boost growth in the region, though expectations of further central bank easing kept a lid on gains. Germany is considering the creation of a “shadow budget” that would enable Berlin to boost public investment beyond the restrictions of constitutionally enshrined debt rules, three people familiar with the internal discussions told Reuters. Euro gains were capped, however, bef


The euro rose on Monday after a report that Germany may boost fiscal stimulus increased hopes that governments will act to boost growth in the region, though expectations of further central bank easing kept a lid on gains. Germany is considering the creation of a “shadow budget” that would enable Berlin to boost public investment beyond the restrictions of constitutionally enshrined debt rules, three people familiar with the internal discussions told Reuters. Euro gains were capped, however, bef
Euro gains on hopes of German fiscal stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-06
Keywords: news, cnbc, companies, fiscal, boost, stimulus, german, hopes, central, report, officials, gains, public, rai, euro, ecb, expectations, monetary


Euro gains on hopes of German fiscal stimulus

The euro rose on Monday after a report that Germany may boost fiscal stimulus increased hopes that governments will act to boost growth in the region, though expectations of further central bank easing kept a lid on gains.

Germany is considering the creation of a “shadow budget” that would enable Berlin to boost public investment beyond the restrictions of constitutionally enshrined debt rules, three people familiar with the internal discussions told Reuters.

Government officials are flirting with the idea of setting up independent public entities that would seize the historic opportunity of zero borrowing costs and take on new debt to increase investment in infrastructure and climate protection, the officials said.

A key part of that coalition is the commitment to keep balanced budgets. If they are waiving from that it could be very supportive for the euro and very bearish for the dollar, said Bipan Rai, North American head, FX strategy at CIBC Capital Markets in Toronto.

The euro gained to $1.1053 against the greenback, up 0.24% on the day, after earlier trading as low as $1.1014.

Euro gains were capped, however, before the European Central Banks meeting on Thursday, when the central bank is expected to introduce a new wave of monetary stimulus.

“The default is to be negative euro into ECB,” said Kenneth Broux, head of corporate research at Societe Generale. “Resuming bond purchases won’t do anything” to the euro zone economy because “the monetary policy in Europe has stopped being effective,” Broux added.

“The ECB has done all it can.” The euro may get a boost, however, if the ECB disappoints dovish expectations already baked into the market. We get the sense the market is expecting a bit too much of a dovish outcome this week and if that is the case that could imply that tactical long euro positions might do well, Rai said.

In the U.S., consumer price inflation data on Thursday and retail sales data on Friday are the main economic focus. They will come after the jobs report on Friday showed that U.S. jobs growth slowed more than expected in August.

The Federal Reserve will continue to act “as appropriate” to sustain the U.S. economic expansion, Fed Chair Jerome Powell said Friday in Zurich, bolstering expectations for a rate cut at the Fed’s meeting on Sept. 18.


Company: cnbc, Activity: cnbc, Date: 2019-09-06
Keywords: news, cnbc, companies, fiscal, boost, stimulus, german, hopes, central, report, officials, gains, public, rai, euro, ecb, expectations, monetary


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ECB hawks are trying to downplay the chances of a huge stimulus package in September

Two top officials have tried to temper market expectations of an immediate quantitative easing (QE) package being launched by the European Central Bank (ECB). Investors cheered his dovish comments with ECB members like François Villeroy de Galhau highlighting that a major bond-buying program, also known as QE, could come in the proceeding months if needed. But just as investors gear up for the ECB’s next meeting on September 12, two notably hawkish members of the euro zone’s central bank have de


Two top officials have tried to temper market expectations of an immediate quantitative easing (QE) package being launched by the European Central Bank (ECB). Investors cheered his dovish comments with ECB members like François Villeroy de Galhau highlighting that a major bond-buying program, also known as QE, could come in the proceeding months if needed. But just as investors gear up for the ECB’s next meeting on September 12, two notably hawkish members of the euro zone’s central bank have de
ECB hawks are trying to downplay the chances of a huge stimulus package in September Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-30  Authors: silvia amaro, matt clinch
Keywords: news, cnbc, companies, huge, hawks, ecb, trying, package, qe, downplay, program, members, stimulus, market, ecbs, deflation, euro, chances, risk


ECB hawks are trying to downplay the chances of a huge stimulus package in September

Two top officials have tried to temper market expectations of an immediate quantitative easing (QE) package being launched by the European Central Bank (ECB).

Earlier in the summer, ECB President Mario Draghi said he was looking at further options to prop up the 19-member euro zone economy, outlining that one of the possibilities included a new program of asset purchases to stimulate lending and boost inflation.

Investors cheered his dovish comments with ECB members like François Villeroy de Galhau highlighting that a major bond-buying program, also known as QE, could come in the proceeding months if needed.

But just as investors gear up for the ECB’s next meeting on September 12, two notably hawkish members of the euro zone’s central bank have decided to inject some reality back into the debate.

“In my opinion, based on the current data, it is much too early for a huge package,” executive board member Sabine Lautenschlaeger said in an interview with Market News this week which was published on the ECB’s website Friday.

“I am still convinced that the Asset Purchase Programme (APP) is the ultima ratio, and it should only be used if you have a risk of deflation; and the risk of deflation is nowhere to be seen now.”


Company: cnbc, Activity: cnbc, Date: 2019-08-30  Authors: silvia amaro, matt clinch
Keywords: news, cnbc, companies, huge, hawks, ecb, trying, package, qe, downplay, program, members, stimulus, market, ecbs, deflation, euro, chances, risk


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Lagarde will have ‘very little’ left to tackle any euro zone weakness, bank CEO says

The next European Central Bank (ECB) chief will have “very little” ammunition left to prop up the euro zone in times of economic stress, according to the CEO of Austrian banking group Erste. After five years of negative interest rates in the euro zone coupled with other monetary stimulus measures, there are concerns that the ECB is running out of tools. This could put the euro zone in a vulnerable situation as growth in the region remains dormant. “We are now present in a situation where the new


The next European Central Bank (ECB) chief will have “very little” ammunition left to prop up the euro zone in times of economic stress, according to the CEO of Austrian banking group Erste. After five years of negative interest rates in the euro zone coupled with other monetary stimulus measures, there are concerns that the ECB is running out of tools. This could put the euro zone in a vulnerable situation as growth in the region remains dormant. “We are now present in a situation where the new
Lagarde will have ‘very little’ left to tackle any euro zone weakness, bank CEO says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: silvia amaro
Keywords: news, cnbc, companies, tools, treichl, weakness, vulnerable, situation, ceo, ecb, yesterday, left, negative, euro, bank, zone, lagarde, little, tackle


Lagarde will have 'very little' left to tackle any euro zone weakness, bank CEO says

The next European Central Bank (ECB) chief will have “very little” ammunition left to prop up the euro zone in times of economic stress, according to the CEO of Austrian banking group Erste.

After five years of negative interest rates in the euro zone coupled with other monetary stimulus measures, there are concerns that the ECB is running out of tools. This could put the euro zone in a vulnerable situation as growth in the region remains dormant.

“We are now present in a situation where the new governess of the ECB will take over on November 1 and will be in situation that she (President-elect Christine Lagarde) has very, very little that she can still do,” Andreas Treichl told CNBC’s Geoff Cutmore during a panel event at the Salzburg Summit on Friday.

This is “because we already heard yesterday (that) we will, most likely in September, move down another 10 or 20 basis points, which will move the euro into even more negative territory,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: silvia amaro
Keywords: news, cnbc, companies, tools, treichl, weakness, vulnerable, situation, ceo, ecb, yesterday, left, negative, euro, bank, zone, lagarde, little, tackle


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European stocks close higher after ECB holds interest rates; Sopra Steria jumps 16%

European stocks closed higher Friday, after the European Central Bank suggested it could lower borrowing costs to tackle a slowdown in the euro zone. The ECB held interest rates steady on Thursday, but outgoing President Mario Draghi all but pledged to ease monetary policy further as the growth outlook deteriorates. Policymakers at the central bank are also considering other measures to support the euro zone over the coming months, including resuming quantitative easing. The latest guidance from


European stocks closed higher Friday, after the European Central Bank suggested it could lower borrowing costs to tackle a slowdown in the euro zone. The ECB held interest rates steady on Thursday, but outgoing President Mario Draghi all but pledged to ease monetary policy further as the growth outlook deteriorates. Policymakers at the central bank are also considering other measures to support the euro zone over the coming months, including resuming quantitative easing. The latest guidance from
European stocks close higher after ECB holds interest rates; Sopra Steria jumps 16% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: sam meredith
Keywords: news, cnbc, companies, outlook, ecb, european, worse, jumps, interest, central, higher, holds, sopra, euro, stocks, bank, steria, rates


European stocks close higher after ECB holds interest rates; Sopra Steria jumps 16%

European stocks closed higher Friday, after the European Central Bank suggested it could lower borrowing costs to tackle a slowdown in the euro zone.

The pan-European Stoxx 600 closed provisionally almost 0.4% higher, with most sectors in positive territory. Telecoms stocks were the biggest gainers, rising over 2%.

The ECB held interest rates steady on Thursday, but outgoing President Mario Draghi all but pledged to ease monetary policy further as the growth outlook deteriorates.

Speaking to reporters at a press conference Draghi said the economic outlook was “getting worse and worse,” citing a weak manufacturing sector as well as uncertainty over trade and Brexit.

The euro dipped versus the dollar Friday to $1.1118.

Policymakers at the central bank are also considering other measures to support the euro zone over the coming months, including resuming quantitative easing.

The latest guidance from the ECB comes shortly before an eagerly anticipated rate decision from the Federal Reserve. The U.S. central bank is widely expected to cut rates by 25 basis points at the end of the month.


Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: sam meredith
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German yields bounce off record low after Draghi says recession risk is ‘pretty low’

Yields around the globe bounced from lows after European Central Bank President Mario Draghi promised monetary support for what the central bank sees as slowing growth in Europe but still a “pretty low” chance of a recession. His first comments helped push the yield on the benchmark German 10-year bund hit a new record low of -0.412%. It also kept pressure on U.S. rates, with the yield on the benchmark 10-year Treasury note falling to around 2.02%. Draghi said that the risk of a recession in the


Yields around the globe bounced from lows after European Central Bank President Mario Draghi promised monetary support for what the central bank sees as slowing growth in Europe but still a “pretty low” chance of a recession. His first comments helped push the yield on the benchmark German 10-year bund hit a new record low of -0.412%. It also kept pressure on U.S. rates, with the yield on the benchmark 10-year Treasury note falling to around 2.02%. Draghi said that the risk of a recession in the
German yields bounce off record low after Draghi says recession risk is ‘pretty low’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: elliot smith
Keywords: news, cnbc, companies, recession, yield, ecb, pretty, central, 10year, record, german, risk, monetary, bounce, week, low, treasury, bank, draghi, yields


German yields bounce off record low after Draghi says recession risk is 'pretty low'

Mario Draghi, President of the European Central Bank (ECB), speaks during a news conference to discuss monetary policy in Tallinn, Estonia, on Thursday, June 8, 2017.

Yields around the globe bounced from lows after European Central Bank President Mario Draghi promised monetary support for what the central bank sees as slowing growth in Europe but still a “pretty low” chance of a recession.

German yields fell to record lows under 0% early Thursday morning after Draghi said at a press conference that “a significant degree of monetary stimulus continues to be necessary to ensure that financial conditions remain very favorable and support the euro area expansion.”

His first comments helped push the yield on the benchmark German 10-year bund hit a new record low of -0.412%. It also kept pressure on U.S. rates, with the yield on the benchmark 10-year Treasury note falling to around 2.02%.

Later, however, rates snapped higher after the ECB leader suggested that some members of the central bank weren’t convinced on certain aspects of a possible stimulus package. Draghi said that the risk of a recession in the region was “pretty low,” giving a more mixed message than the earlier statement.

Those comments were enough to curb and reverse Treasury buying as some investors took the ECB’s rhetoric to mean that the U.S. Federal Reserve may not as dovish as expected when it announces its monetary decision next week. The 10-year Treasury yield was last seen up at 2.071%.

“Draghi made a lot of promises but he didn’t do anything actually,” said Ward McCarthy, chief financial economist at Jefferies. “He came out of the starting gate fast but the follow through did not deliver on those expectations.”

“There was an expectation that the ECB was ready to move sooner,” he added. “This had knock-on effects for expectations for the Fed next week. The thinking is maybe those that were expecting a 50 basis point cut should downgrade those expectations.”

— CNBC’s Patti Domm contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: elliot smith
Keywords: news, cnbc, companies, recession, yield, ecb, pretty, central, 10year, record, german, risk, monetary, bounce, week, low, treasury, bank, draghi, yields


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European markets close lower after Draghi’s mixed message on stimulus

European stocks fluctuated Thursday afternoon but ended lower after the European Central Bank ECB kept interest rates on hold but signaled that more monetary easing could be on the horizon. The pan-European Stoxx 600 clkosed provisionally down by 0.5% during trade, with most sectors and major bourses in negative territory. However, ECB President Mario Draghi gave a more mixed message in a subsequent press conference, suggesting that some members of the central bank weren’t convinced on certain a


European stocks fluctuated Thursday afternoon but ended lower after the European Central Bank ECB kept interest rates on hold but signaled that more monetary easing could be on the horizon. The pan-European Stoxx 600 clkosed provisionally down by 0.5% during trade, with most sectors and major bourses in negative territory. However, ECB President Mario Draghi gave a more mixed message in a subsequent press conference, suggesting that some members of the central bank weren’t convinced on certain a
European markets close lower after Draghi’s mixed message on stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: chloe taylor sam meredith, chloe taylor, sam meredith
Keywords: news, cnbc, companies, stimulus, different, ecb, message, markets, easing, central, draghis, lower, mixed, close, told, european, members, bank, low


European markets close lower after Draghi's mixed message on stimulus

European stocks fluctuated Thursday afternoon but ended lower after the European Central Bank ECB kept interest rates on hold but signaled that more monetary easing could be on the horizon.

The pan-European Stoxx 600 clkosed provisionally down by 0.5% during trade, with most sectors and major bourses in negative territory.

The ECB prepared markets for more easing measures on Thursday, causing the euro to briefly fall to a two-year low against the dollar, also sending shares higher. However, ECB President Mario Draghi gave a more mixed message in a subsequent press conference, suggesting that some members of the central bank weren’t convinced on certain aspects of a possible stimulus package.

He told CNBC’s Annette Weisbach that all ECB members agreed that further stimulus was needed, but there were differences regarding the various elements of any program. “We had a broad discussion,” he said, “Whenever we have a package so complex as this, you’d expect that people have different nuances about the different parts of the package.”

Draghi also told reporters Thursday that the risk of a recession in the region was low.


Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: chloe taylor sam meredith, chloe taylor, sam meredith
Keywords: news, cnbc, companies, stimulus, different, ecb, message, markets, easing, central, draghis, lower, mixed, close, told, european, members, bank, low


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