rounded corner
rounded corner
top border

Global equities rally, Eurozone yields converge after ECB delivers disputed stimulus

Bookmark and Share

Asian equities gained after the European and US markets closed in the green, as the European Central Bank (ECB) delivered more stimulus to boost inflation and Trump administration hinted at an interim trade deal with China to ease tensions before the next face-to-face meeting scheduled early October.


The euro first tanked then rebounded with tightened core-periphery yield spread, as the ECB lowered its deposit rate by 10 basis point to the historical low of -0.50% and announced another round of Quantitative Easing (QE). President Draghi also said that its high time for fiscal policy to take charge in tandem with the unorthodox monetary policy to make sure that these measures lead to a higher inflation and a stronger economic growth in the Euro area.

Alas, the ECBs latest decision fell short of market expectations, as investors anticipated larger monthly purchases, up to 45 million euro per month according to a consensus of analyst expectations. The single currency recovered to 1.1087 against the greenback. A move above 1.1110, the two-month down-trending channel top, could push for a broader euro correction.

Read the full LCG article

Opening calls

FTSE to open 13 points higher at 7358

DAX to open 15 points higher at 12425

Recent articles from this author

About the author

Ipek Ozkardeskaya is a senior analyst at MBAex with a solid experience in the financial industry. She has strong technical background in economics and quantitative finance. Previously, she worked as a senior market analyst in London Capital Group, FX strategist in Swissquote Bank and as a client sales executive at HSBC Private Bank in Geneva. She also developed quantitative models in automatic trading as part of BCV’s Structured Products team. Ipek has a Master’s degree in Financial Engineering & Risk Management and a Bachelor degree in Economics from University of Lausanne.
Contributing  author since 11/09/2017

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. is not a broker, nor does it have an affiliation with any broker.

Copyright ©2005-2020, a product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy