Economy

Weaker euro helps buoy European stocks

Weaker euro helps buoy European stocks

European Central Bank made a decision to keep its benchmark interest rate unchanged at 0.00 percent, holding its deposit facility rate at its current level of -0.4 percent and its marginal lending rate at 0.25 percent. "Ultimately they will remove the easing bias", Oliveri said, recommending buying the euro on dips.

"Talk of greater available slack and the clear easing of inflation pressures has taken the pressure off the committee to act, and with a typically dovish Mario Draghi allowed to maintain an accommodative stance going forward, today is clearly a case of taking with one hand and giving with the other", he wrote.

In fact, the Euro zone economy is expected to grow even faster in the coming days.

The main driver behind the correction in the GBP/EUR exchange rate was Draghi's suggestion that, in light of its downbeat inflation outlook the ECB's approach to monetary policy would remain "reactive".

It also raised its growth forecast to 2.4 per cent for 2018, up from 2.3 per cent it expected in December.

Europe's most powerful banker says America's decision to go it alone on trade could trigger retaliation, damage confidence and hurt the global economy. They will keep buying until they are satisfied that consumer-price growth is back on track toward the goal of just under 2 percent.

Analysts such as ING Diba Chief Economist Carsten Brzeski also believe that the ECB's stimulus program will not be seen beyond this year, as deflationary threat is not troubling now.

Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management said the issue would continue to hang over markets however.

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He said the European Central Bank had lifted its 2018 growth forecast for the eurozone from 2.3 to 2.4 percent, underscoring a bright outlook despite the political risks on the horizon.

What to Play if QE Ends This Year?

STOCKS: European stocks edged up as investors were somewhat relieved after news that Trump could exclude some United States allies from his tariff list. The risks surrounding economic growth were still described as "broadly balanced", although "rising protectionism" was noted as a downside risk.

West Texas Intermediate crude fell 1 percent to $60.53 a barrel.

As soon as the European Central Bank dropped its " long-standing pledge to increase bond buying if needed", Germany's 10-year bond yield rose.

This week has seen sharp swings in stocks from positive to negative as predictions the measures will not be as bad as feared were offset by news Wednesday the president's pro-trade top economics advisor Gary Cohn had resigned. Then investors will be needing some quality exposure like dividend growers ProShares MSCI Europe Dividend Growers ETFEUDV. It should make it easier for people and companies to fund pension savings.

Appointed in 2001, Rimsevics was detained last month by the Corruption Prevention Bureau (KNAB) and accused of having solicited and receiving a bribe of at least 100,000 euros ($125,000).

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