Markets rally on expectations of more ECB stimulus - business live

Discussion in 'Market News' started by Lily, Dec 2, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    All the day’s economic and financial news, as investors anticipate fresh stimulus moves from Mario Draghi on Thursday

    8.49am GMT

    There’s a bit of edginess in the markets this morning, as investors wait for November’s eurozone inflation data to arrive in 70 minutes time.

    Economists expect a small uptick, from 0.1% to 0.2% -- while core inflation (which strips out volatile factors like energy and food) might hover around 1.1%.

    Given that the region’s failure to reach its inflation targets is one of the main reasons the Eurozone’s central bank is considering another injection of QE, this Wednesday’s figures perhaps carry slightly more weight than they have of late.

    8.34am GMT

    8.27am GMT

    This chart shows how investors expect the ECB to impose deeper negative interest rates on commercial banks.

    That would discourage them from leaving money in its vaults rather than lending it to consumers and businesses:

    Mkt is currently pricing in a 15bp cut in the depo rate. Will ECB be able to match or exceed mkt expectations again?

    8.16am GMT

    It’s possible that the European Central Bank disappoints the markets tomorrow.

    If that happens, there could be some disappointment in the markets.

    8.06am GMT

    Ding ding - European markets are open for trading, and shares are rising.

    The German DAX, French CAC, Italian FTSE MIB and Spanish IBEX are all up around 0.4%, ahead of tomorrow’s ECB meeting.

    8.00am GMT

    You’d think that printing banknotes would be a safely lucrative business (losing money? Just make some more!).

    7.50am GMT

    There could be ructions in Wolfsberg his morning, as the billionaire owners of Volkswagen face workers for the first time since the emissions cheating scandal broke.

    The Porsche-Piech have been criticised for keeping a low profile since the VW crisis erupted. But today, several members of the group will make the trip to the carmakers headquarters to show solidarity with workers - who are being forced to down tools over Christmas because sales have weakened.

    Wolfgang Porsche, chairman of family-owned majority shareholder Porsche Automobil Holding SE, will address thousands of workers in hall 11 of Volkswagen’s huge factory in Wolfsburg, Germany. He’ll be flanked at the 9:30 a.m. staff meeting by the other three supervisory board members who represent the reclusive clan: Louise Kiesling, Hans-Michel Piech and Ferdinand Oliver Porsche.

    The Porsche-Piech family has been asked by labor leaders to signal their commitment to workers, now facing two weeks of forced leave during the Christmas holidays as the crisis begins to affect sales.

    Volkswagen's billionaire owners will address thousands of workers Wednesday in Germany

    7.35am GMT

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

    There’s a ‘calm before the storm’ feeling in the markets today. Investors are bracing for Thursday’s European Central Bank meeting, where it is widely expected to boost its stimulus programme.

    Stocks set to rebound in Europe as ever closer to @ecb rate decision.100% economists surveyed see more stimulus

    Our European opening calls: $FTSE 6419 up 24 $DAX 11292 up 31 $CAC 4925 up 10 $IBEX 10396 up 17 $MIB 22649 up 68

    #eurozone #inflation data today -- too little too late to keep @ECB from easing? @mariatad

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