The recovery of the Euro zone economy is heavily dependent on incentives provided by the European Central Bank, said today the chairman of the bank, Mario Draghi.
These comments suggest that the bank may decide to increase the “quantitative easing” – ie bond purchases Bank , at the next meeting in December.
The trading on the European stock markets trading is now conducted on a negative trend, also because the weakening trend in the Euro, with the longest sequence of declines against the US dollar since introduced in 1999.
Even at the height of the European crisis, the Euro didn’t weakened for so many days in a row.
The trading on the European stock exchanges opened with gains, towards of the speech of Mario Draghi, the President of the Central Bank.
Asian markets are trading this morning with a mixed trend.
The Nikkei index stands out positively in light of the weakness of the Japanese Yen.
Last night the trading on Wall Street ended in a positive trend.
The chairman of the US Federal Reserve, Janet Yellen said yesterday in her testimony before the US Congress tha the election of Donald Trump to be the president of the United States has not changed the plans of the Federal Reserve to raise interest rates “relatively soon”
Yellen also said that the economic data currently justify higher interest rates and that if there would be no dramatic changes, the interest rates will continue to rise gradually after that.
The US weekly jobless claims came to 235 thousand.
This figure is the lowest in 43 years and represents the continued improvement in the labor market in the last eight years.
The figure is also lower than the economists’ forecasts had expected jobless claims of 255 thousand.
The foreign exchange market:
The US dollar weakened against the Euro by 0.15% and is trading at about 1.071 dollars for Euro.
The trading on Wall Street opens with slight modifications at the leading indices, in light of the testimony of Federal Reserve Governor Janet Yellen at the Congress.
The US inflation data released today indicate the sharpest increase in the CPI in the US for six months.
The increase was recorded mainly due to increased fuel prices and rents, and it seems that the Fed was waiting for those data to be able to start raising the interest rates again in December – a year after it raised last time.
According to Labor Department data, the US consumer prices in October rose by 0.4% compared to September, and at an annual rate of 1.6%.
This is the sharpest annual increase since October 2014.
In September, the index increased by 0.3%
Another statistic that may delay the interest rate in the US is the core inflation, the CPI excluding energy and food, which is the main measure pursued by the Federal Reserve.
The core’s inflation rose in October by 0.1% compared to September, and the annual core inflation rate slowed to 2.1% compared to 2.2%.
The futures contracts on Wall Street are signalling on a positive opening, while the European markets are being in a mixed trend.
The Asian markets closed at a stable trend while the Oil prices are rising.
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