07 March 2014: ECB Gives The Euro Incentives To Clamber Up
DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.
Yesterday's trading session took place under the auspices of the expected meeting of the European Central Bank. The ECB kept the key interest rate at the former level of 0.25% and improved the forecast on economic growth. According to the new estimates of the European Central Bank, gross domestic product of the Eurozone will grow by 1.2% this year, whereas an increase of 1.1% was predicted earlier.
This decision was not a surprise and did not have any special impact on the markets, but the awaited press conference of Mario Draghi after the meeting did not please investors. He stated that the European Central Bank intends to keep key interest rates at the current level, or will lower them over longer period of time, whereas participants of the markets expected to hear hints on the possible reduction of rates in the near future.
As a result, indices closed the trading session with a insignificant growth, the British FTSE 100 got stronger by 0.19%, the French CAC 40 increased by 0.59%, and the German DAX went to plus by 0.01%. The regional STXE 600 indicator increased, in turn, by less than 0.1%, having closed on a level of 337.28 points.
Additionally , the euro strengthened its position in relation to the dollar and other currencies. The EUR/USD currency pair managed, from the level of opening at 1.3732 to go up to the maximum level on 1.3872, and this morning, is traded on a level of 1.3868.
As for the situation in the American platforms, the number of primary requests for unemployment benefits in the USA was reduced last week from the reconsidered value of 349 thousand to 323 thousand, and it appeared to be below expectations of 338 thousand.
Following the results of the session, the indicator of blue chips, the Dow Jones Industrial Average, raised by 0.38% to the level of 16421.89 points, the index of the wide market, Standard & Poor's 500, increased by 0.17% to the level of 1877.03 points, and the index of high-tech industries, Nasdaq Composite, went to a minus on 0.13% and reached a level of 4352.13 points.
In the evening, the attention of investors is going to be focused on the data on the labor market of the USA. Most probably, this data will not bring any significant changes, but now the ECB meeting is over, statistics from the US are going to be the main focus of investors attention. Yesterday, some representatives of the FED stated that only the sharp deterioration of indicators will lead to a change of course on the repayment reduction. One of them, the head of the FED of Philadelphia, Plosser, also made assumptions that it could take at least another two months before we see signs of the data being unaffected by the unusually cold winter conditions.
Copyright: MAYZUS Investment Company Ltd
DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.
Yesterday's trading session took place under the auspices of the expected meeting of the European Central Bank. The ECB kept the key interest rate at the former level of 0.25% and improved the forecast on economic growth. According to the new estimates of the European Central Bank, gross domestic product of the Eurozone will grow by 1.2% this year, whereas an increase of 1.1% was predicted earlier.
This decision was not a surprise and did not have any special impact on the markets, but the awaited press conference of Mario Draghi after the meeting did not please investors. He stated that the European Central Bank intends to keep key interest rates at the current level, or will lower them over longer period of time, whereas participants of the markets expected to hear hints on the possible reduction of rates in the near future.
As a result, indices closed the trading session with a insignificant growth, the British FTSE 100 got stronger by 0.19%, the French CAC 40 increased by 0.59%, and the German DAX went to plus by 0.01%. The regional STXE 600 indicator increased, in turn, by less than 0.1%, having closed on a level of 337.28 points.
Additionally , the euro strengthened its position in relation to the dollar and other currencies. The EUR/USD currency pair managed, from the level of opening at 1.3732 to go up to the maximum level on 1.3872, and this morning, is traded on a level of 1.3868.
As for the situation in the American platforms, the number of primary requests for unemployment benefits in the USA was reduced last week from the reconsidered value of 349 thousand to 323 thousand, and it appeared to be below expectations of 338 thousand.
Following the results of the session, the indicator of blue chips, the Dow Jones Industrial Average, raised by 0.38% to the level of 16421.89 points, the index of the wide market, Standard & Poor's 500, increased by 0.17% to the level of 1877.03 points, and the index of high-tech industries, Nasdaq Composite, went to a minus on 0.13% and reached a level of 4352.13 points.
In the evening, the attention of investors is going to be focused on the data on the labor market of the USA. Most probably, this data will not bring any significant changes, but now the ECB meeting is over, statistics from the US are going to be the main focus of investors attention. Yesterday, some representatives of the FED stated that only the sharp deterioration of indicators will lead to a change of course on the repayment reduction. One of them, the head of the FED of Philadelphia, Plosser, also made assumptions that it could take at least another two months before we see signs of the data being unaffected by the unusually cold winter conditions.
Copyright: MAYZUS Investment Company Ltd