• Dovish tone from the ECB drives down European markets

    European markets traded lower in today’s morning session as investors process the European Central Bank’s (ECB) decision of introducing further stimulus. The CAC 40, DAX 30 and FTSE 100 were all in the red. The ECB’s President Mario Draghi declared to boost the real economy by introducing a new round of loans to bank. Amongst other things President Draghi mentioned that interest rates will not change for the time being. Furthermore the ECB also cut its projected growth forecast to 1.1 for the year from 1.7. Due to the dovish tone by the ECB the EURUSD has fallen considerably as it dropped from a level of 1.1307 yesterday at 12:45 GMT to 1.1176 at 19:46 GMT. There has however been a slight recovery as EURUSD bounced back to a level of 1.1209 at 08:38 GMT.

    Looking at an individual stock, there is finally some positive news for U.K. retailer Debenhams (LON: DEB) as its share price rose 14.5%. The share price rose as Mike Ashley stated he will drop his role as CEO of Sports Direct to focus on Debenhams (LON: DEB).

    US markets were also in the red on the back of Wall Street worries over a slowing world economy. The Dow Jones Industrial Average (DJIA), Nasdaq 100 and S&P 500 were all lower.

    On data front, we have the Consumer Inflation Expectations in the U.K. at 09:30 GMT. In the U.S. we have the monthly Average Hourly Earnings; Non-Farm Payrolls and Unemployment Rate at 13:30 GMT.

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