So, that was all very “let’s wait and see” from Mario Draghi yesterday as nothing new was signalled after keeping rates on hold and then addressing the adoring hordes of press gathered in front of him. Quantitative easing does not appear to be on the horizon at the moment and nor does any other knee-jerk reaction aimed at pumping more money around the failing economy. Of course, this all managed to strengthen the Euro in what could well be a “dead cat bounce” and just a temporary respite from its woes.
The UK has had a mixed week datawise and we see the final piece of the jigsaw released today as service PMI are released. Manufacturing data was disappointing, whilst construction data was above expectations so it falls on services to provide direction for the Pound. Of course, service data is important for the UK as we are a service-based economy.
In Japan, the Bank of Japan Governor played down the effects of the weaker Yen on the economy as a whole. Inflation is expected to pick up in the second half of the year and the Bank of Japan will make efforts to attain the magical 2.0% figure as soon as possible.
Over in the US, it is Non-farm payrolls data day. This is, of course, the most significant data to be fed into the markets. We also see the end of Quantitative Easing in the US and with nothing to replace it, the markets will continue to examine hints of when an interest rate hike will happen.
Today we have services PMI from Germany, the UK and the Eurozone, retail sales from the Eurozone and a raft of data from the US including services PMI, earnings, unemployment and of course nonfarm payrolls.
Have a good weekend and good luck to Chelsea Ladies in their last home game of the season against Everton on Sunday!
Posted in Daily Market News on Oct 3 2014
Today is the first Thursday of the month and as ever this will see the ECB rate decision and more importantly for the markets, Mario Draghi’s Press Conference. Rates aren’t expected to change from 0.05% but what the markets will be looking for is Draghi’s views on whether the purchase...VIEW FULL ARTICLE
Posted in Daily Market News on Oct 2 2014 by