Euro Falls After ECB Interest Rate Cut, Nonfarm Payroll Figures out Later Today
September 5, 2014 9:17 am
The Euro reeled in the aftermath of yesterday’s decision by the ECB to cut its main interest rate to 0.05% and its announcement of plans to initiate securities purchases later in the year. The Euro dropped 1.4% yesterday, its lowest level against USD for 13 months. However, the Euro is currently up slightly against the Dollar at 1.2956, with hopes of a lasting peace settlement between Russia and Ukraine still on the table. Euro zone GDP figures out this morning showed zero growth for the second quarter of 2014 – while many will be encouraged by the ECB’s willingness to take further action to combat deflation, it will not have gone unnoticed that the ECB has not announced a significant quantitative easing package in the style of the US one now coming to a close.
In the US, the S&P500 is once again below the 2k level, having closed down the last three days in a row. Attention will be firmly focussed on the US Nonfarm payroll figures due later today, which may give US markets some further direction.
In stocks news, BP shares took a tumble yesterday after a court ruling placing the majority of culpability in the Deepwater Horizon disaster squarely on the firm, opening it up to further potential penalties of billions of Dollars. The firm is appealing against the ruling, but in the meantime saw its share price drop by 6% yesterday, as panicked investors sold off stock. The share price has rallied slightly today, currently up by 0.95%.
The Euro reeled in the aftermath of yesterday’s decision by the ECB to cut its main interest rate to 0.05% and its announcement of plans to initiate securities purchases later in the year. The Euro dropped 1.4% yesterday, its lowest level against USD for 13 months. However, the Euro is currently up slightly against the Dollar at 1.2956, with hopes of a lasting peace settlement between Russia and Ukraine still on the table. Euro zone GDP figures out this morning showed zero growth for the second quarter of 2014 – while many will be encouraged by the ECB’s willingness to take further action to combat deflation, it will not have gone unnoticed that the ECB has not announced a significant quantitative easing package in the style of the US one now coming to a close.
In the US, the S&P500 is once again below the 2k level, having closed down the last three days in a row. Attention will be firmly focussed on the US Nonfarm payroll figures due later today, which may give US markets some further direction.
In stocks news, BP shares took a tumble yesterday after a court ruling placing the majority of culpability in the Deepwater Horizon disaster squarely on the firm, opening it up to further potential penalties of billions of Dollars. The firm is appealing against the ruling, but in the meantime saw its share price drop by 6% yesterday, as panicked investors sold off stock. The share price has rallied slightly today, currently up by 0.95%.
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