Spreadex Market Update
Further action resisted
The market was pinning hopes on a rate cut or at least an extension to the discounted loan programme for banks although neither appeared.
For Draghi to intentionally fall short of the markets expectations indicates he is either waiting for the outcome on the Greek elections on the 17th June, or waiting to see if Spain can recapitalize their banks without a bailout, or there is potentially some sort of game-changing remedy to be delivered at the next EU summit on the 28th and 29th June.
The Bank of England and Federal Reserve followed Draghi's cautious, 'wait and see' stance on Thursday as Governor Mervyn King kept rates unchanged for the UK economy and announced no additional monetary easing, and Fed Chairman Ben Bernanke gave a nebulous testimony before the Joint Economic Committee.
There is growing incongruence between policymakers at the Federal Reserve, ECB and the Bank of England meaning the next meetings could unveil rate cuts or further large scale asset purchases as the pressure builds. It seems as though any action has been postponed for now until we know the future for Greece on the 17th June.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
