Euro Slides As 'downbeat' ECB Warns On Economy
Faizan Hashmi Published December 14, 2018 | 01:06 AM
London, (APP - UrduPoint / Pakistan Point News - 13th Dec, 2018 ) :The euro slipped on Thursday after the ECB trimmed its growth forecast for the eurozone because of "mounting uncertainties" from within and outside the region.
European Central Bank chief Mario Draghi said risks facing the area were now "moving to the downside", although that did not stop the bank from pulling the plug on its massive emergency crisis-fighting economic stimulus known as quantitative easing (QE).
"While Mario Draghi was boxed in by previous announcements about QE, his press conference revealed two stark truths -- he remains deeply concerned at the fragility of eurozone growth and reserves the right to administer further monetary stimulus," said JR Zhou, market analyst at online trading platform Infinox.
David Madden, market analyst at CMC Markets, said a "downbeat Draghi" weighed on the single Currency.
Europe's major stock markets, meanwhile, held mostly steady, with "dealers still hopeful that Beijing and Washington DC are on the road to striking a deal" on trade, Madden said.
Share prices were also supported by mild gains on Wall Street in the New York morning.
- 'Upside' for sterling - Under its "quantitative easing" programme, the European Central Bank has pumped 2.6 trillion Euros ($3.0 trillion) into the eurozone economy in order to stoke growth and inflation.
The ECB originally began buying debt in 2015, saying it wanted to fight the threat of deflation and keep money flowing around the eurozone economy.
Growth has picked up since then, surging in 2017 before falling back this year.
The British pound meanwhile pushed higher, one day after Prime Minister Theresa May won a vital confidence vote that was sparked by her Brexit deal.
"Our view is that a 'no-deal' Brexit remains quite unlikely, despite all the recent political upheaval", Capital Economics said.
"With this in mind, we think that the risks are skewed to the upside for sterling," it said.
Asian equities posted more gains Thursday as investors were cheered by conciliatory noises from China and the US on trade.
While the tariffs row between Beijing and Washington is far from being resolved, there is a lot more optimism on trading floors this week that the world's top two economies can make headway in talks over the next three months.
Dealers mulled a report that Beijing is considering replacing its "Made in China 2025" programme that aims to boost its technology sector, a key point in anger for Washington.
The Wall Street Journal said authorities were looking at putting back the scheme's timetable by a decade to concentrate on improving standards.
That followed news China had agreed to resume importing soybeans -- a major boost for US farmers -- as well as remove a levy on US autos imposed earlier this year in response to Donald Trump's initial tariffs.
- Key figures around 1640 GMT - London - FTSE 100: FLAT at 6,877.50 points (close) Frankfurt - DAX 30: FLAT at 10,924.70 (close) Paris - CAC 40: DOWN 0.3 percent at 4,896.92 (close) EURO STOXX 50: UP 0.1 percent at 3,110.76 New York - Dow Jones: UP 0.2 percent at 24,580.82 Tokyo - Nikkei 225: UP 1.0 percent at 21,816.19 (close) Hong Kong - Hang Seng: UP 1.3 percent at 26,524.35 (close) Shanghai - Composite: UP 1.2 percent at 2,634.09 (close) Pound/dollar: UP at $1.2635 from $1.2629 at 2200 GMT Euro/dollar: DOWN at $1.1353 from $1.1369 Dollar/yen: UP at 113.68 Yen from 113.29 yenOil - Brent Crude: UP 8 cents at $60.23 per barrelOil - West Texas Intermediate UP 25 cents at $51.41
Related Topics
Recent Stories
IHC seeks cases details from provinces against Gandapur
Police break up pro-Palestinian demos in Amsterdam, Berlin
MCF purchases new machinery
UN chief urges Israel to halt escalation, crossings be re-opened
China hospital attack leaves two dead, 21 wounded
FWMC staff activated for cleanliness of 4 model roads
Karachi Bling Special edition SEP Fashion Summit concludes
Dolphin force arrests 120 POs, 170 dacoits during current year
Passport fees update: Check latest details here
Huge quantity of unregistered medicines recovered
IESCO notifies power suspension programme
229 diseases directly linked to obesity: Experts
More Stories From World
-
Police break up pro-Palestinian demos in Amsterdam, Berlin
51 minutes ago -
UN chief urges Israel to halt escalation, crossings be re-opened
51 minutes ago -
China hospital attack leaves two dead, 21 wounded
51 minutes ago -
UN says its access to Gaza's Rafah crossing 'denied' by Israel
48 minutes ago -
Anadolu organizes training program for Algerian journalists
48 minutes ago -
Karmod completes quick-install service cabins for flight school in Adana, Türkiye
47 minutes ago
-
China's top legislature launches enforcement inspection of intangible cultural heritage law
47 minutes ago -
Al Jazeera to pursue legal action 'until the end' over Israel ban
2 hours ago -
Macron hosts Xi in French mountains to press messages on Ukraine, trade
3 hours ago -
Olympic flame to arrive in France ahead of Paris Olympics
3 hours ago -
Ukraine says thwarted Russian-led plot to kill Zelensky
3 hours ago -
S.Africa rescuers say in contact with 11 people in collapsed building
3 hours ago