ECB Hints At Easing Monetary Policy Amid Warnings Of Slowing Economy

July 25, 2019 06:35 PM BST | By Team Kalkine Media
 ECB Hints At Easing Monetary Policy Amid Warnings Of Slowing Economy

Global Markets: Shares at the United States were trading in red, with the Dow Jones Industrial Average Index fell of 125.23 points or 0.46% and quoting at 27,144.64, S&P 500 index slumped 12.96 points or 0.43% and trading at 3,006.62 and the technology benchmark index Nasdaq Composite declined 56.92 points or 0.68% and quoting at 8,265.63 respectively, at the time of writing.

Global News: Ahead of the meeting by the US central bank, the European Central Bank President Mario Draghi said that while the outlook has worsened, he saw a low risk of a recession in the eurozone, sending the Treasury yields higher on Thursday. As investors were not impressed by the monetary policy of the European Central Bank and mixed earnings reports pointed to a slowing global economy, US equities declined on Thursday.

European Markets: The London’s equity benchmark index FTSE 100 ended at 12.41 points or 0.17 per cent lower at 7,489.05, the FTSE 250 index snapped 32.57 points or 0.17 per cent higher at 19,820.35, and the FTSE All-Share Index closed 4.33 points or 0.11 per cent lower at 4,096.03 respectively. Another European equity benchmark index STOXX 600 ended at 389.52, down by 2.21 points or 0.56 per cent.

European News: European Central Bank President Mario Draghi, in the face of persistently low inflation, hinted at easing monetary policy as the growth outlook deteriorated and said the bank was looking at interest rate cuts, fresh bond buys and new policy guidance, aiming at a reinterpretation of the inflation target. The Confederation of British Industry reported that the retail sales in the country contracted for a third month running in July, declining for the longest period in almost eight years, suggesting economic slowdown could continue into the third quarter. After the comments by the European Central Bank suggested rate cut, British 10-year government bond yields declined to their lowest level since September 2016.

London Stock Exchange (LSE)

Top Performers Stocks: COBHAM PLC (COB), DIALIGHT PLC (DIA), and HOWDEN JOINERY GROUP PLC (HWDN) surged by 34.54 per cent, 9.42 per cent and 8.97 per cent respectively.

Top Laggards Stocks: METRO BANK PLC (MTRO), ASTON MARTIN LAGONDA GLOBAL HOLDING (AML), and SAGE GROUP PLC (SGE) decreased by 19.19 per cent, 17.76 per cent and 10.36 per cent respectively.

FTSE 100 Index

FTSE100 Index Chart: 5-days Price Performance (as on July-25-2019), after the market closed. (Source: Thomson Reuters)

Top Risers Stocks: ASTRAZENECA PLC (AZN), COMPASS GROUP PLC (CPG) and COCA-COLA HBC AG (CCH) rose by 7.72 per cent, 2.72 per cent and 1.90 per cent respectively.

Top Fallers Stocks: SAGE GROUP PLC (SGE), SSE PLC (SSE) and RELX PLC (REL) reduced by 10.36 per cent, 7.34 per cent and 3.69 per cent respectively.

Top Leaders (Active Volume): LLOYDS BANKING GROUP PLC, VODAFONE GROUP PLC, and HSBC HLDGS PLC.

Top Risers Sectors: Healthcare (+4.09%), Consumer Cyclicals (+0.46%) and Telecommunications Services (+0.01%).

Top Fallers Sectors: Technology (-2.77%), Utilities (-1.89%) and Consumer Non-Cyclicals (-1.41%).

Currency Quotes & Fixed Income

FX Pair*: GBP/USD and EUR/GBP were exchanging at 1.2457 and 0.8946 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 2.074% and 0.698% respectively.Â

*At the time of writing


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