Asian markets were mostly unchanged leading up the European Central bank interest rate decision. At this point, most market participants are optimistic about potential stimulus from the Chinese government. Thus, all eyes are on America. Though recent employment data was not terribly strong, good services PMI data and the prospect of a better than expected NFP report are keeping bearish sentiment in check. As a result, Asian equities are facing mixed pressure and have not been moving significantly in either direction. The Nikkei closed up 0.08%, the Hang Seng closed down 0.18%, and the ASX 200 closed down 0.15%.
European markets are quite bullish today after the European Central Bank decided to decease the interest rate from 0.25% to 0.15% – a significant step in fighting deflation. Furthermore, during the press conference following the decision, central bank officials announced plans for a quantitative easing program, though the start date for a such an initiative was not revealed. Though investors were expecting more from the ECB after usually low inflation data this week, most seem optimistic so far, and thus the trajectory for equities should continue to be upward. Now, the Stoxx 50 is up 1.20%, the FTSE is up 0.08%, and the DAX is up 0.44%.
American markets are also quite bullish thanks to the European Central Bank’s actions. Though US equities are not directly affected, a stronger Europe provides US firms with more opportunities abroad. Though unemployment data was worse than expected, causing indices to reverse, many investors are still optimistic about tomorrow’s Nonfarm Payrolls report. Thus, considering the boost US markets have received from Europe and current bullish sentiment, equities may soon crawl out of the red. Right now, the Dow is down 0.12%, the S&P is down 0.01%, and the Nasdaq is up 0.09%.
June 5, 2014 – Indices News
Asian markets were mostly unchanged leading up the European Central bank interest rate decision. At this point, most market participants are optimistic about potential stimulus from the Chinese government. Thus, all eyes are on America. Though recent employment data was not terribly strong, good services PMI data and the prospect of a better than expected NFP report are keeping bearish sentiment in check. As a result, Asian equities are facing mixed pressure and have not been moving significantly in either direction. The Nikkei closed up 0.08%, the Hang Seng closed down 0.18%, and the ASX 200 closed down 0.15%.
European markets are quite bullish today after the European Central Bank decided to decease the interest rate from 0.25% to 0.15% – a significant step in fighting deflation. Furthermore, during the press conference following the decision, central bank officials announced plans for a quantitative easing program, though the start date for a such an initiative was not revealed. Though investors were expecting more from the ECB after usually low inflation data this week, most seem optimistic so far, and thus the trajectory for equities should continue to be upward. Now, the Stoxx 50 is up 1.20%, the FTSE is up 0.08%, and the DAX is up 0.44%.
American markets are also quite bullish thanks to the European Central Bank’s actions. Though US equities are not directly affected, a stronger Europe provides US firms with more opportunities abroad. Though unemployment data was worse than expected, causing indices to reverse, many investors are still optimistic about tomorrow’s Nonfarm Payrolls report. Thus, considering the boost US markets have received from Europe and current bullish sentiment, equities may soon crawl out of the red. Right now, the Dow is down 0.12%, the S&P is down 0.01%, and the Nasdaq is up 0.09%.
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