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
Punjab CM Maryam Nawaz in police uniform at Chung police center
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
Today Gold Rate in Pakistan 25 April 2024
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
FM Dar conveys deepest sympathy on torrential rains devastation in UAE
Spain PM Sanchez says weighing resignation after wife's graft probe
Tennis: ATP/WTA Madrid Open results - 1st update
Long-lost Klimt portrait auctioned off for 30 mn euros
Osaka seals first win on clay since 2022 in Madrid
More Stories From World
-
US Supreme Court to hear Trump immunity claim
10 minutes ago -
Blinken calls for US, China to manage differences 'responsibly'
40 minutes ago -
Norway oil giant Equinor's profit falls on lower gas prices
40 minutes ago -
N. Macedonia's right-wing presidential candidate wins 1st round
60 minutes ago -
Vietnam court jails soft drinks tycoon in $40 million scam case
60 minutes ago -
The guardian angels of the source of the Seine
1 hour ago
-
Star Dudamel brings inclusive vision to New York Philharmonic
2 hours ago -
Paris dream of swimming in the Seine finally within reach
3 hours ago -
Portugal's Carnation Revolution, 50 years on
3 hours ago -
Tough times for Argentine factories as consumers penny-pinch
3 hours ago -
Use of alcohol and e-cigarettes among youth 'alarming': WHO
3 hours ago -
Football: Italian Cup result
3 hours ago