Spreadex Market Update

Euro markets open confidently



European markets opened confidently today as investors became more optimistic that the ECB would cut interest rates this Thursday.  The optimism seems to be well grounded as the Eurozone is struggling with returning to growth and recent data showing poor confidence levels by businesses is also concerning investors.  Evidently investors now believe that more will be done by officials to help the struggling economy.

 

In addition, sentiment also seems to be boosted by reports  that US policy officials will continue with their monetary stimulus measures amidst a reduction in demand as well as softening inflation. 

 

Clearly one of the obstacles policy makers were facing were the concerns of rising inflation caused by a prolonged spell of quantitative easing.  However, since this is no longer a concern then the catalyst driving optimism at the moment, in the form of quantitative easing, could be allowed to continue which is perhaps a signal to investors that policy makers are still ready to support the US economy. 

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