ECB turns on the taps to battle economic slump and aid stricken banks

ECB turns on the taps to battle economic slump and aid stricken banks

ECB turns on the taps to battle economic slump and aid stricken banks

Slumping growth also forced Mario Draghi, the Bank's president, to launch a new scheme to pump cheap funds into eurozone banks, bolstering lenders across the currency area but particularly in recession-struck Italy.

Treasury yields fell yesterday on ECB's dovish turn.

"Our initial take is these developments are pressing down on market confidence, seen in lower bond yields and equities". The euro duly sank to depths last seen in mid-2017, sending the safe-haven USA dollar and yen surging.

In Asia, Nikkei futures were pointing to an opening loss of around 1.6 percent, while the Australian market was off 0.4 percent. MSCI's broadest index of Asia-Pacific shares outside Japan skidded 1.1 percent to a two-week trough. The Dow Jones Industrial Average is down 200.23 points, or 0.8%, to 25473.23, while the S&P 500 lost 22.52 points, or 0.8%, to 2748.93 and the Nasdaq Composite fell 84.46 points, or 1.1%, to 7421.46.

Investors have now turned their attention to the US non-farm payrolls report on Friday, which could provide further signals on the strength of the economy and how it would affect the Federal Reserve's monetary policy. There was also a chance the jobless rate could fall by more than forecast given the recent strength in employment.

The numbers are still likely to highlight the relative outperformance of the USA economy, especially against the European Union, and further encourage dollar bulls. "The ECB's downgrade of its 2019 European growth forecast to only 1.1% from 1.7% as recently as three months ago fanned existing investor fears of a worsening global growth slowdown", writes Alec Young, managing director of global markets research at FTSE Russell. The Japanese currency was one of the few to hold its own on the dollar at 111.50.

Messi back for Argentina after eight month absence
Like Aguero, Chelsea's on-loan Juventus striker has not been involved for the Albiceleste since Russian Federation 2018. Gonzalo Higuain is another high-profile attacking omission.

The ECB slashed its growth and inflation forecasts for 2019 and lowered those for 2020 and 2021 on Thursday, acknowledging that Europe's slowdown was longer and deeper than earlier thought.

Policymakers had not expected to change their guidance on interest rates.

"The good news here for gold is that the interest rate environment globally is unlikely to move much higher", Bart Melek, head of commodity strategies at TD Securities in Toronto, with reference to the European Central Bank statement.

Despite the potential for additional stimulus from the European Central Bank, which would be bullish for gold prices, most traders agree that the announcement of a trade deal between the United States and China would be bullish for the U.S. Dollar, which would put pressure on gold prices.

USA crude was last down 32 cents at $56.34 a barrel, while Brent crude fell 39 cents to $65.91.

Recommended News

  • Gophers Stun Purdue on Senior Night at the Barn

    Gophers Stun Purdue on Senior Night at the Barn

    Despite that, consecutive three-pointers from Purdue's Ryan Cline would inch them to within three. Carsen Edwards' 3-point shot brought Purdue within 71-69 with 5.2 seconds to go.
    Colorado Man Admits to Killing Pregnant Wife and 2 Daughters

    Colorado Man Admits to Killing Pregnant Wife and 2 Daughters

    Add Shanann Watts Case as an interest to stay up to date on the latest Shanann Watts Case news, video, and analysis from ABC News. He said he felt like there was something implanted in his mind that he was going to do it and that he "had no control over it".
    North Korea airs dramatic documentary of Kim-Trump summit

    North Korea airs dramatic documentary of Kim-Trump summit

    The site is where North Korea carried out satellite launches in recent years until the recent attempts at detente with Washington. Mr Bolton also said it was too soon to make a determination on the reports of North Korea's missile activities.
  • Major League Baseball  active rosters to expand to 26 in 2020

    Major League Baseball active rosters to expand to 26 in 2020

    These include roster expansion to 26 players with a 13-pitcher limit and a three-batter minimum for pitchers for the 2020 season. The 25 maximum through August 31 has been a part of the collective bargaining agreement since the first labor deal in 1968.
    Kane is a beast, says Dortmund goalkeeper Burki

    Kane is a beast, says Dortmund goalkeeper Burki

    Dortmund would probably have gone through had they someone like Kane in their ranks as over the two legs they failed to take their chances.
    Federal judge to sentence ex-Trump Campaign Chairman Paul Manafort Thursday

    Federal judge to sentence ex-Trump Campaign Chairman Paul Manafort Thursday

    Manafort, who turns 70 in April, faces potentially spending the rest of his life behind bars when he comes before Judge T.S. They also discussed a peace plan to resolve cross-border hostilities after Russia's annexation of Crimea in 2014.
  • Thailand Court Bans Party That Nominated Princess for PM

    Thailand Court Bans Party That Nominated Princess for PM

    The army said that Thaksin's disrespect for the throne, in addition to his abuse of power, led to his ousting. Party executives - including two Shinawatra family members - were also banned from politics for a decade.
    Court grants unborn baby legal rights!

    Court grants unborn baby legal rights!

    A teenager in Alabama is suing an abortion clinic for terminating the life of his unborn child against his wishes. Alabama recognizes the personhood of a fetus , so the man was allowed to sue on behalf of " Baby Roe ".
    Justin Trudeau and Jody Wilson-Raybould on the SNC-Lavalin affair

    Justin Trudeau and Jody Wilson-Raybould on the SNC-Lavalin affair

    His conciliatory remarks in front of reporters on Thursday were created to shift public attention away from the scandal.
  • U.S. plans to end endangered species protections for gray wolves

    U.S. plans to end endangered species protections for gray wolves

    Wildlife advocates have said gray wolf protections need to remain in place while they re-establish in their historic ranges. State officials and government biologists say the region's wolves have continued to thrive despite pressure from hunting.
    Zuckerberg has seen the light; Facebook to make drastic changes

    Zuckerberg has seen the light; Facebook to make drastic changes

    The three services would remain separate apps, but the infrastructure behind the scenes would be the same, according to the Times. But Zuckerberg said this would be an opt-in service, and users can keep their accounts separate if they prefer.
    Ex-Cop Convicted In Fatal Shooting Of Black motorist

    Ex-Cop Convicted In Fatal Shooting Of Black motorist

    Then they held a prayer circle outside the courtroom, shouting praise to God and Jesus for the verdict as many broke down in sobs. Local 10 reports Raja told investigators Jones threw a gun in the grass, which was found more than 100 feet away from his body.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.