(MENAFN– ecpulse)
The stocks markets showed little reaction early Thursday ahead of key policy decisions from the European Central Bank and Bank of England, although no change is expected in the both outcomes.
Uncertainty is dominating the market sentiment and traders are cautiously waiting for direction amid a heavy economic day featuring policy decisions from Europe, while focus shifts from geopolitics to ECB President Mario Draghi, who might hint at fresh monetary measures down the line to counter stalling growth and risks of deflation amid rising geopolitical risks.
Ukraine`s Petro Poroshenko reached a deal with Russia`s Vladimir Putin on permanent ceasefire in the Donbass region in eastern Ukraine. A "mutual understanding was achieved concerning the steps which will enable the establishment of peace," Poroshenko`s press office said in a statement yesterday.
On the policy front, the ECB decision will be out at 11:45 GMT, following by the big event of the week, Draghi`s press conference at 12:30 GMT. The bank will also update its staff economic forecasts. We might see a couple of downgrades compared with June`s projections, given the weak inflation and GDP figures.
It`s also a big day for the BoE, although we`re not expecting any change in monetary policy, despite the 7-2 split in its Monetary Policy Committee (MPC) last month.
European stock markets look muted. The Stoxx 600 fell 0.15% to 344.45 as of 04:23 a.m. ET. The British stocks added gained this morning, after hitting a new 14-year high yesterday.
- Britani`s FTSE 100 index rose 0.14% t6,883.41
- France`s CAC 40 fell 0.43% to 4,403.77
- Germany`s DAX 30 fell 0.63% to 9,565.64
Looking at the global markets, Asian stocks swung between gains and losses. U.S. stock-index futures also looked calm but mainly in the red territory ahead of the policy decisions from Europe.
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