Global markets lacklustre ahead of ECB meet

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 today

Source 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%

Currencies

Euro 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 barrel

WTI crude was flat at USD 95.4 a barrel ahead of EIA inventory report today

API says inventories went down by 7.2 million barrels last week, which supported WTI crude today

LME Copper hit a session high of USD 7750 a tonne yesterday, which was down 0.5% today

Gold continued to face a resistance at USD 1700 an ounce

What to watch out for (Aside of ECB)

Eurozone Q2 GDP

German Factory Orders

BoE Rate Decision, Asset Purchase Targets

US ADP Employment

US Jobless Claims

ISM Services Index

EIA Inventories