(MENAFN– ecpulse)
European markets fluctuated early Thursday as markets took a breather from a seven-day rally ahead of the European Central Bank`s monetary policy meeting.
The ECB`s interest rate decision will be the main market mover today before Friday`s US non-farm payrolls report, thus traders are not taking any big moves before the ECB probably leaves its benchmark interest rate unchanged at a record low of 0.25% according to analsyts` median forecast. Comments by the ECB Presdient Mario Draghi after the announcement will be much in focus too.
As of 04:39 a.m. ET, the Stoxx Europe 600 was stuck at 337.07, led by financials, oil and gas, then consumer services. Telecommunciation dropped the most, followed by utilites and technology shares. As for the the major bourses in Europe:
- London`s FTSE 100 was up 0.23% at 6,674.39
- Paris`s CAC 40 was flat at 4,430.81
- Frankfurt`s DAX 300 was litte changed at 9,619.85
Experts are calling for no change in the ECB`s policy when the decision is out at 08:30 a.m. ET, although there has been pressure mounting on policymakers to take action against the consecutive decline in inflation rates, at 0.50% now, the lowest in over four years.
The ECB has mentioned that recovery in the euro area will take place ina gradual manner this year, yet the low inflation remains on the main challenges in the short run.
Todays data showed that Purchasing Managers` Index (PMI) composite of both manufacturing and services, ticked down to 53.1 from 53.3, coming below projections of 53.1.
PMI manufacturing narrowed expansion to 53.2 in March from a prior of 53.3, while the services gauge retreated 52.2 from 52.6, lower than the flash reading of 52.4.
In Germany, the manufacturing sector slipped to a four-month low of 53.7 from a prior of 54.8, while services dropped to 53.0 from a previous of 55.9.
French manufacturing, on the other hand, shifted to expansion after recording 52.1 from the prior contraction of 49.7, and the services PMI rose to 51.5 from 47.2.
Draghi said he has been preparing for new monetary tools to combat deflation.
As long as inflation remains low the higher the possibility the euro area would reel from deflationary pressures, Draghi has revealed.
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