Home » Money

Stocks fall as the euro strengthens

28 January, 2018, 00:22 | Author: Melinda Barton
  • DAX Hourly

European Central Bank President Mario Draghi took a swipe at the USA administration, saying the euro's recent rise was partly the result of comments that contradicted an agreement not to talk currencies up or down.

A stronger euro makes it more hard for eurozone nations to sell their products and services overseas. Finally, we do not expect any major change to forward guidance this week apart from the removal of the asymmetry in QE, which we do not think would be consequential.

He added that it would therefore require monitoring.

North of the border, the Bank of Canada kicked off 2018 by hiking interest rates, buoyed by robust job growth and having raised rates twice back-to-back a year ago, even as uncertainty around the fate of the North American Free Trade Agreement lingers.

As widely expected, the ECB kept interest rates and guidance unchanged at its policy meeting, with investors focusing on comments from ECB President Mario Draghi in a subsequent press conference.

Weaker odds of the European Central Bank winding down its long-running quantitative easing program before the end of the year could weigh heavily on the EUR/USD exchange rate.

This has driven the euro to three-year highs against the dollar.

Policy makers reiterated that they'll continue buying 30 billion euros ($37 billion) of assets a month until at least the end of September.


The yield on 10-year German government bonds, the benchmark for the bloc, hit a six-month high at 0.579 percent following Draghi's remarks.

The ECB is expected to hold its main refi rate at a record low zero percent and the deposit rate at -0.40 percent.

Robust quarterly earnings reports and economic data have helped propel major Wall Street indexes to a strong start this year, with each on track for a fourth week of gains.

Some market participants are also concerned that Trump may encourage more protectionist policies at a speech in Davos around 1300 GMT and at his State of the Union speech next week, policies that may ultimately end up pushing the dollar lower.

With no change in policy expected at this juncture any attempt to talk down the prospect of an imminent return to monetary tightening is likely to leave the Euro lacking in support.

But predictions for tighter European Central Bank policy are adding to pressure on the currency and raising market bets for a rate hike as early as December, a move seen as premature even by the most hawkish of policymakers.

The Bank of Japan is also forecast to keep its long-term interest rate target unchanged this year, though 40 percent of economists polled by Reuters expect a hike as Japan's economy continues to strengthen. Capital has fled the greenback onbets that rosy global growth willsee more central banks follow the Fed's hawkish lead, making alternatives seem relatively cheap (and thereby attractive).

Recommended:

  • March 15 sentencing set in McKnight killing

    March 15 sentencing set in McKnight killing

    Prosecutors told jurors Friday that the evidence shows Gasser angrily pursued McKnight and shot him from inside his own vehicle . Two assistants who tried the case said they respect the Friday night verdict and added that the McKnight family was happy.
    Republican Pennsylvania Rep. Pat Meehan won't seek re-election

    Republican Pennsylvania Rep. Pat Meehan won't seek re-election

    But after the woman became involved in a serious relationship with someone outside the office a year ago , Mr. The House Ethics committee has also opened an investigation into Meehan's handling of the claim .
    Leading member of German far-right party resigns after converting to Islam

    Leading member of German far-right party resigns after converting to Islam

    It appears he had only recently converted to Islam, and he resigned from his position on January 11 for "private reasons". It argued that increasing the number of Muslims in the country was a danger to Germany's state, society and values.
  • England dismissed for 196 in 4th ODI vs. Australia

    England dismissed for 196 in 4th ODI vs. Australia

    Australia were always just ahead of the game yet familiar anxieties kept threatening to break through. Woakes' innings got England to a respectable score.
    All the FAQs about the IPL auction

    All the FAQs about the IPL auction

    Yuvraj Singh, the indispensable all-rounder for the Kings XI Punjab , was bought for Rs 2 crore, as was Karun Nair and K.L. But the IPL chose to align the auction to the return of Chennai Super Kings and the Rajasthan Royals and delay it to 2018.
    Xiaomi overtakes Samsung to become top smartphone vendor in India

    Xiaomi overtakes Samsung to become top smartphone vendor in India

    Xiaomi now leads the total number of shipments, close to 8.2 million units, which is 27% of total market share in Q4 2017. In an official statement, the South Korean company says, " Samsung is India's number 1 smartphone company by a distance".
  • John Elway impressed with Baker Mayfield, knows tough decisions loom at receiver

    John Elway impressed with Baker Mayfield, knows tough decisions loom at receiver

    In fact, he was reminded of that before a Senior Bowl practice, according to a very amusing account from Sports Illustrated. USC's Sam Darnold , Lamar Jackson from Louisville and Josh Rosen of UCLA, are also highly-regarded quarterbacks.
    Donald Trump apologises for re-tweeting Britain First

    Donald Trump apologises for re-tweeting Britain First

    The US President was condemned by several noted individuals, including British Prime Minister Theresa May, for the shared tweets . Morgan, a longtime friend of Trump's, was showered with praise and rebukes on social media following the interview scoop.
    Reliance Jio Republic Day 2018 Offer

    Reliance Jio Republic Day 2018 Offer

    Airtel's Rs. 349 prepaid plan offers 56GBs of 3G/4G information with a day by day top of 2GB information for 28 days. Since Jio's new Rs 49 plan is limited to JioPhone users, it won't work with any other phone available out there.
  • Tom Cruise reveals footage of ankle injury from failed Mission Impossible stunt

    Tom Cruise reveals footage of ankle injury from failed Mission Impossible stunt

    She said: "I suffer from vertigo and I really didn't know what I was saying yes to". "It's not fully healed, but we're shooting". What was not supposed to happen was how his ankle hit the outside of the building.
    High hopes for new ambassador for religious freedom

    High hopes for new ambassador for religious freedom

    He ran for USA president in 2008 but ended his campaign before the primaries; he endorsed Sen. The Baptist Joint Committee for Religious Liberty doesn't take positions on appointments.
    If Palestinians don't want peace, United States  has nothing to do with them

    If Palestinians don't want peace, United States has nothing to do with them

    Actresses Emma Thompson and Olivia Wilde, as well as British author Hanif Kureishi were also among the signatories. And as you say, we're working together to defeat those challenges and to meet them".


Popular

Chelsea performances keeping Antonio Conte awake at night
Playing 36 Premier League games for Everton last season, Barkley was the Toffees' key creator with 84 chances created. Conte downplayed the severity of the Willian injury, saying: "I don't think we are talking about a serious injury".

Bombardier wins USA trade case taken by Boeing
Commerce Secretary Wilbur Ross said $1.5 billion in Canadian government subsidies for Bombardier would damage US industry. Boeing said it disagreed with Friday's trade ruling and would review it when further details became available.

Why a move to Inter Milan makes no sense for Sturridge
Jay Rodriguez and Salomon Rondon will try to hit back on counter with their pace and physical presence up front. Klopp has got a squad there that he can probably name 23 or 24 players and give us a tough game.

Samsung Galaxy S9 and S9
The new S series flagships appear to carry forward the S8's design and aesthetics but embrace new internals. The Galaxy S9 will come with a single rear camera setup, 4GB of RAM and 64GB of internal storage.

Senate Probe Concludes Opioids from China Enter US By Mail
Senate investigators explained that their report entailed a year-long probe into just six websites affiliated with Chinese labs. In one case, the investigators traced orders from an online seller in China to a MI man who wired $200 in November 2016.

Federal Bureau of Investigation agent shoots bound kidnapping victim dead in botched raid
Cunningham told investigators that Valladares was being held at Heath's home in northeast Houston , according to court documents. Agents also located the cellphone used to call the brother, according the court documents.

Cat wins $700000 in lawsuit over company's use of feline in advertising
She has travelled the world making television appearances and in 2014, the cat even starred in her own Christmas film. Grumpy Cat's Facebook page has attracted 8.7 million followers and boasts an Instagram of a couple million more.

Apple's Next iOS To Add Battery Monitoring, Business Chat, AR Tools
Apple says Business Chat doesn't share personal information with the businesses and you can end a conversation any time you want. As the company releases developer and public betas in the coming weeks, we'll let you know more about these features.

Kentucky School Shooting Victim's Mother Says Daughter Called Her As She Died
Whitley admits that she had seen some students being bullied at Marshall County saying that, "It happens". Two of the churches said trauma counselors would be available at the prayer service.

Game Developers Conference Survey Contains Positive Findings For Nintendo Switch
It's worth noting that the report's results are a little more bullish for VR's sister in immersive technology, augmented reality. In 2017, 24 of respondents said they were working on a VR game, while only 19 percent are working on one in 2018.