Markets rally ahead of Super Thursday interest rate decision - business live

Discussion in 'Market News' started by Lily, Feb 4, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    The Bank of England will release its quarterly inflation report at noon, followed by a press conference with BoE governor Mark Carney

    9.32am GMT

    You might have expected the euro to fall this morning, after Mario Draghi guilefully declared that central banks shouldn’t stop taking action to fight deflation.

    But the single currency didn’t take the hint. Instead, the euro has hit a three-month high against the US dollar, at $1.116.

    9.14am GMT

    Sales of Volkswagen cars slumped by almost 14% in the UK last month, suggesting that the company is still suffering from the emissions scandal.

    8.57am GMT

    Goldman Sachs has weighed into the Brexit debate, predicting that the pound would slump by around 15% if Britain vote to leave the EU.

    In a new research note, it argues that investors would be put off from putting capital into the UK if the public reject David Cameron’s new deal.

    In our framework, a decline of 2% in domestic demand would still see close to a 15% drop in the British pound to close the current account deficit.

    Related: Goldman Sachs backs campaign to keep Britain in European Union

    8.39am GMT

    European Central Bank chief Mario Draghi has dropped a clear hint that the ECB embark on fresh stimulus measures next month.

    There are forces in the global economy today that are conspiring to hold inflation down. Those forces might cause inflation to return more slowly to our objective. But there is no reason why they should lead to a permanently lower inflation rate.

    What matters is that central banks act within their mandates to fulfill their mandates. In the euro area, that might create different challenges than it does in other jurisdictions. But those challenges can be mitigated. They do not justify inaction.

    A very, very powerful speech by ECB's President Draghi, against any form of complacency. March it is.

    8.38am GMT

    Double ouch:

    Ouch - @CreditSuisse shares at 1992 low. MS analyst Van Steenis surprised bank didn't pre-announce,if enough capital

    8.34am GMT

    Ouch. Shares in Credit Suisse have tumbled by around 10% in early trading.

    The Swiss bank is missing out on today’s rally, after hitting shareholders with a loss of 5.83 billion Swiss francs ($5.8 billion) in the last quarter. That drove the bank into its first annual loss since 2008.

    Market conditions in January 2016 have remained challenging and we expect markets to remain volatile throughout the remainder of the first quarter of 2016 as macroeconomic issues persist .

    Credit Suisse shares tumble almost 10% after swing to $5.8 billion loss

    8.18am GMT

    Oil is continuing to gain ground this morning, adding to last night’s 8% surge.

    Brent crude has risen to $35.36, up another 1%.

    8.16am GMT

    European stock markets are a sea of green, as traders welcome the higher oil price and the weaker US dollar.

    - Europe opens higher
    - First Asia rise in 3 days
    - Oil back above $32
    - Pound falls


    8.10am GMT

    Up we go!

    European markets are rallying at the start of trading, breaking three days of declines during this volatile week.

    Related: Shell profits plunge 87%

    8.02am GMT

    The key to today’s market moves is that the US dollar took an almighty tumble overnight.

    After strengthening for months, the greenback suffered its biggest one-day drop since 2011.

    This delivered a welcome overshadowing of global growth concerns for markets hooked on cheap money.

    Ouch… In case you missed it, US dollar experienced 3rd-biggest 1day drop of past five yrs.

    7.51am GMT

    It’s been another day of wild market action in Asia.

    Most stock markets have surged overnight, on relief that the oil price has climbed back to over $35 per barrel.

    What we have seen is one of the most amazing one day moves in oil one will ever see, with US and Brent oil rallying 9% and 8% from yesterday’s ASX 200 close.

    7.34am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    Our European opening calls:$FTSE 5931 up 94
    $DAX 9597 up 162
    $CAC 4298 up 71$IBEX 8447 up 132$MIB 17679 up 267

    UK companies posting results - Royal Dutch Shell, Astra Zeneca, Smith & Nephew, Bellway, Vodafone, Compass Group

    US companies posting interim results - Yum Brands!, Philip Morris, Boston Scientific, MetLife, Cigna, Marsh McLennan

    Continue reading...

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