Because of comments regarding the single currency that made Mario Draghi, and have been seen as a sign of a potential quantitative easing in the Eurozone. During an interview with the German newspaper Handelsblatt, President of the European Central Bank (ECB) said the risk of deflation in the Eurozone could not be excluded and said it was prepared to act if down inflation expectations.
The euro fell to US $ 1.2026 at its weakest point of the session, a reduction of 0.7%. The dollar index, which measures the US currency relative to its major rivals, rose 0.4% to reach 90.57, its highest point in nine years. The index rose 12.8% in 2014, which is its best year since 1997, while investors awaited a rise in interest rates were attracted to the economy of the United States.
In capital markets, the demand for sovereign debt with higher returns from the periphery of the Eurozone, gained momentum after Draghi comments, reducing the costs they would have to assume the government for loans. The Spanish 10-year bond fell 8 basis points to reach 1.53%, while the Portuguese equivalent down 9 basis points to reach 2.6%. The returns from Germany were stable at 0.55%.
There was also a reminder of the flaws that presents the pale economic recovery in the eurozone, with the new data from the manufacturing sector, which interrupted a rising equity markets in the region.
The weak manufacturing data in the ICG by Great Britain beat sterling. The growth in the sector unexpectedly slowed to its lowest point in three months. After the figures were published, the pound fell 0.4%, to reach US $ 1.5466.
European shares have fallen after ICG figures, turning after had produced a positive performance in the early hours of the trading day. London’s FTSE 100 fell 0.6%, to reach 6523.93. The Frankfurt Xetra Dax 30 fell 0.9%, while the Cac 40 in Paris fell 0.8%.
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