Global markets lacklustre ahead of ECB meet
The meeting of European Central Bank (ECB) will be held today. Chairman Mario Draghi will address press conference at 2.30 pm CET (at 18 hours IST).
September 06, 2012 / 09:07 IST
By Gautam Broker, Research Analyst at CNBC-TV18
The meeting of European Central Bank (ECB) will be held today. Chairman Mario Draghi will address press conference at 2.30 pm CET (at 18 hours IST).All eyes are on the announcement and details of the potential bond purchase program. Market is split between 0-50 basis points cut in refinancing rate. They say that won't be a major surprise even if it comes through. Investors should watch out for commentary on yield caps, quantum and mode of purchases.Speculation rife over ECB delivery todaySource based agency reports indicated that there won't be rate cut today. Divergent news flow moved over quantum of bond buys.US markets at close on Friday: Dow Jones gained 0.1% at 13,047.8 while S&P 500 Index fell 0.1% to 1,403.4 and Nasdaq was down 0.2%European markets at close: CAC rose 0.2% and DAX went up 0.5% while FTSE declined 0.3%. Spain went up 0.1% whereas Italy lost 0.6%CurrenciesEuro strenghtened ahead of ECB meet. It rebounded from a low of 1.250 to 1.2625 to the US dollar yesterday.Euro is currently at 1.259 to the US dollar. Dollar index got back to around 81 today from 81.7 yesterday. Yen was steady at 78.4 to the US dollar yesterday Commodities Brent crude fell nearly 1% yesterday to USD 113.1 a barrelWTI crude was flat at USD 95.4 a barrel ahead of EIA inventory report todayAPI says inventories went down by 7.2 million barrels last week, which supported WTI crude todayLME Copper hit a session high of USD 7750 a tonne yesterday, which was down 0.5% todayGold continued to face a resistance at USD 1700 an ounceWhat to watch out for (Aside of ECB)Eurozone Q2 GDPGerman Factory Orders BoE Rate Decision, Asset Purchase Targets US ADP EmploymentUS Jobless ClaimsISM Services IndexEIA Inventories Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
