Tag Archives: Draghi

European Central Bank

Euro Stoxx 50 Rises as Draghi Boosts Confidence

The European region is currently enjoying its fastest growing rate since 2002 as virtually all stocks are seen rising in the Europe’s biggest rally in 19 months.

After reaching its 2013 low in June, the Euro Stoxx 50 Index (SX5E) has risen 21 percent with only thee stocks not showing increase. Companies across the board are recording gains with expanding prospects as the longest-ever European recession comes to an end. The pledge of European Central Bank’s President Mario Draghi to protect the euro as recovery takes hold has further boosted investors’ confidence in the economy of the region.

The Euro Stoxx 50 increased 0.7 percent to 3,038.96 yesterday, closing at 2 1/2-year high and a 15 percent overall improvement for 2013. The measure has taken its worse hit of 35 percent between February and September 2011 as the debt crisis that forced five countries to accept a bailout worsened.

Open an Account
Super Mario to the Rescue?

Super Mario to the Rescue?

The euro fell earlier on Thursday as investors were anticipating ECB chairman Mario Draghi’s policy suggestions to revive the ailing single currency following substandard attempts to save Cyprus. Draghi said in a recent press conference that ECB’s monetary policy will remain accommodative.

“In the coming weeks, we will monitor very closely all the incoming information on economic and monetary developments, and assess the impact on the outlook for price stability,” Draghi said to reports on Thursday.

Most investors did not expect Draghi to make significant changes which could have either potentially boost the euro or create a backlash and thus possibly deepen the recession.

Open an Account
Euro Bounces Back

Euro Bounces Back

The euro bounced back from its four-month low on Tuesday morning as investors were anticipating data from the eurozone’s factory output. Eurozone PMI data is expected to be released later today. The single currency gained strength against the dollar, but Thursday’s European Central Bank meeting led by Mario Draghi will likely be the real determinant of the euro’s general direction. Moreover, concerns over the ongoing crisis in Cyprus continue to worry investors. The eurozone’s handling of the Cypriot debacle has been disastrous and it will take time until confidence in the euro returns in full strength.

Open an Account
European Stocks Moving Up

European Stocks Moving Up

Markets are having a fairly good day in Europe as all the major indices are trending upwards following the ECB and BoE meetings on Thursday. The British FTSE 100, France’s CAC, Germany’s DAX, Spain’s IBEX and Italy’s FTSE MIB were all up between 0.2 and 0.6 per cent.

While investors expected more gains to be possible for the first months of 2013, they also maintained caution in their predictions as there are risks that markets will turn unstable due to insecurity over how ECB will eventually treat Italy’s complications during its consultations on Thursday.

Italy’s elections which resulted in a gridlock are raising concerns over how southern European countries like Spain, Italy and Greece will manage with much-needed and severe austerity measures to rebuild their ailing and poorly performing economies, keeping in mind that spending cuts can easily spur mass anger in these countries.

The ECB is estimated to keep interest rates low, at 0.75 per cent but experts argue that ECB chair Mario Draghi will reiterate his policy statements regarding the loosening of the ECB’s procedures on bond-buying in order to keep Italy afloat.

 

Open an Account
Positive Sentiment Drives Stocks in Europe

Positive Sentiment Drives Stocks in Europe

European stocks were reaching the skies for a ninth successive month on Thursday following Ben Bernanke’s, head of the U.S. Federal Reserve, and Mario Draghi’s, head of the European Central Bank, stern arguments for looser monetary policies on both sides of the Atlantic.

The Stoxx Europe 600 index rose half a point to 288.65, jumping 0.9 per cent compared to a day earlier. The wider optimistic trading disposition arose after Bernanke, following his additional day of congressional statements on Wednesday, repeated the argument that the Fed’s super-slack monetary-easing policy is required to upkeep the economy.

In other European news, Germany’s DAX 30 index increased 0.8 per cent to 7,734.56, with shares of Bayer AG climbing 2.6%. In the U.K, the FTSE 100 index picked up 0.3 per cent and managed climbed to 6,344.18.

Open an Account
Draghi Drags Down the Euro

Draghi Drags Down the Euro

The euro weakened against the dollar on Monday following the European Central Bank President Mario Draghi’s comments suggesting continued economic feebleness in the eurozone. According to Draghi, “Available indicators signal further weakness at the beginning of 2013, with domestic demand remaining dampened. This is due to weak consumer and investor sentiment and to the necessary balance sheet adjustments in both the public and private sectors. Foreign demand also remains subdued.” The EUR/USD dropped to 1.3340 from 1.3360, after Draghi’s comments.

Open an Account
Dollar Trailing The Euro

Dollar Trailing The Euro

The euro went higher against the dollar in low-action trade on Monday, while most Asian exchanges remained closed due to the Lunar New Year. EUR/USD hit 1.3391 during Asian trade, consolidating at 1.3379. The euro came under pressure after ECB Chief Mario Draghi said that the eurozone’s chief financial body would sturdily monitor changes in the markets to see if the sturdier euro had an impact on the inflation. The ailing single currency was also further hit by hesitation ahead of Italian elections and new political tensions in Spain where the government is entangled in a corruption frenzy.

Open an Account