LONDON: European Central Bank Mario Draghi sent Europe's stock and bond markets surging on Tuesday (Jun 18) by hinting at further eurozone interest rate cuts, while the euro fell sharply on the news.Draghi's dovish comments even sparked the fury of US President Donald Trump, who accused the ECB chief of sending the euro down against the dollar to make it "unfairly easier for them to compete against the USA".Draghi retorted that "we are ready to use all the instruments that are necessary" to fulfil the ECB's price stability mandate and insisted "we don't target the exchange rate".Equity investors meanwhile rejoiced, with Paris and Frankfurt stocks up more than two percent at the close."Super Mario is back!" said IG analyst Chris Beauchamp in summary at the market action."Despite only having a few months left to his tenure, the head of the ECB has handed his successor a firmly dovish bias, as he leaves the door open to more QE (quantitative easing stimulus) and renewed negative … [Read more...] about ‘Super Mario’ sends European stock markets skyward
Days stock market is closed
LONDON: European stock markets mostly ticked upwards on Monday (Jun 17) as investors moved cautiously at the start of a busy week packed with key interest rate decisions, in particular from the US Federal Reserve.The indices in London and Paris closed modestly ahead after Hong Kong stocks rallied, with investors there cheering a decision by the city to suspend plans to push through a controversial extradition law.Wall Street also slightly rose as traders took a breather ahead of the G20 summit next week, where US President Donald Trump and his Chinese counterpart Xi Jinping are due to hold hotly-awaited talks on their long-running trade war."There isn't a tonne of conviction in the early going, partly because the market appears to be caught up in a swirl of headlines carrying loose ends," said Briefing.com analyst Patrick O'Hare.One of those swirling headlines is the ongoing tension between the US and Iran - on Monday Tehran announced its uranium stockpile will soon pass the limit … [Read more...] about European stock markets cautiously rise at start of hectic week
Will Trump murder the 10-year bull market? Since Trump’s May 5 tweet, markets were buffeted by sharp downturns and spikes in volatility. Hope turned to despair as negotiations with China broke down, prompting Trump to implement sweeping tariffs. Many feared that Trump’s latest actions may put the bull market’s longevity to the test. Unfortunately, it turned out that Trump was just getting started. “TARIFF is a beautiful word indeed” – Trump To justify his penchant for using tariffs as his primary tool to deter bad behavior of other countries, Trump tweeted the following on June 1, 2019: “When you are the “Piggy Bank” Nation that foreign countries have been robbing and deceiving for years, the word TARIFF is a beautiful word indeed! Others must treat the United States fairly and with respect – We are no longer the “fools” of the past!” Trump imposes tariffs on Mexico over illegal … [Read more...] about Will Trump murder the 10-year bull market?
Indonesian equities slumped Monday, erasing this year’s gains, as foreign funds pulled out of the local market. With almost every other Asian market still in the green, it is now the first in Asia to lose the rally it posted earlier this year. The Jakarta Composite Index fell 1.2% Monday, extending its decline after three weeks of losses as concerns surrounding the escalating US-China trade war hit markets across Asia. The wider-than-expected first quarter current account deficit reported Friday added to the wall of worry. Malaysia’s FTSE Bursa Malaysia KLCI Index didn’t partake in the global rally and swung between gains and losses earlier this year. The benchmark index has lost almost 7% this year. “What happened was a mix of several factors, from global to domestic,” John Teja, a director at Ciptadana Sekuritas, said by phone. He pointed to the continuation of the U.S.-China trade rift, concerns surrounding Indonesia’s macroeconomic fundamentals … [Read more...] about Indonesia first in Asia to erase this year’s stock market rally
By Joe McDonald The Associated Press Mon., May 13, 2019 BEIJING - Deepening its trade war with the U.S. and sending world financial markets into a slide, China announced higher tariffs Monday on $60 billion worth of American goods in retaliation for President Donald Trump’s latest penalties on Chinese products. Tariffs of 5% to 25% will take effect on June 1 on about 5,200 American products, including batteries, spinach and coffee, the Finance Ministry said. The announcement followed a move by the U.S. on Friday to raise duties on $200 billion of Chinese imports to 25%, up from 10%. American officials accused China of backtracking on commitments it made in earlier negotiations. With investors unnerved by the potential for economic damage on all sides, stocks sank across the globe. The Dow Jones industrial average was down more than 600 points, or close to 2.5%, in midafternoon trading, while the Standard & Poor’s 500 also sank nearly 2.5%. Earlier, … [Read more...] about China retaliates on tariffs, stock markets go into a slide