Draghi Disappoints Markets
LONDON, (APP - UrduPoint / Pakistan Point News - 21th july, 2016) - Investors failed to get a hoped-for signal from the ECB about a quick shot of stimulus, leaving markets mixed on Thursday, while the airline sector took a hit following a bleak outlook from EasyJet. As expected, the European Central Bank did not announce any new measures at its regular policy meeting on Thursday. However, investors had been looking to ECB chief Mario Draghi to hint strongly at a further loosening in monetary policy in September to deal with any slowdown caused by uncertainty after Britain's shock vote on June 23 to quit the European Union.
Draghi signalled the "readiness, willingness, ability" of ECB policymakers to use all the central bank's tools if needed, but also praised the resilience of the markets following the Brexit vote. Matt Weller at Faraday Investment Research said Draghi struck a "slightly-less-dovish than expected tone" during his press conference. Meanwhile, Joshua Mahony at financial derivatives trading house IG said the "key takeaway is that Draghi needs more data" before stepping up stimulus. "Sufficient data may not be available by the next meeting, pointing towards longer delay," he tweeted.