News Regulators 

ECB board member says normalization of interest rates will be gradual

“Yves Mersch, a board member at the European Central Bank (ECB), told CNBC that the central bank will be gradual with its return to normal monetary policy” writes Daniel Roland for cnbc.com. The central bank also said that it will extend its program until at least September of next year.Despite the improved macroeconomic conditions in the euro zone, the central bank believes that it cannot yet put an end to monetary stimulus. Source: cnbc.com Share This:

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Markets News Regulators 

Top central bankers vow to talk investors out of easy money

“Then-Fed chair Ben Bernanke famously sent global bond markets into a tailspin in May 2013 by suggesting that bond purchases could be reduced” reports cnbc.com. “Why discard a monetary policy instrument that has proved to be effective?”. Four of the world’s top central bankers promised on Tuesday to keep openly guiding investors about future policy moves as they slowly withdraw the huge monetary stimulus rolled out during the financial crisis.To do this, words will be key, the heads of the four central banks told an ECB conference on communication.”Forward guidance…

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News Regulators 

Dollar Enjoying Renaissance…

“That could spark more inflation and put U.S. monetary policy on a more aggressive path” writes Albert R for bloomberg.com. Bloomberg Prophets Professionals offering actionable insights on markets, the economy and monetary policy.Although equity markets have reflected optimism all year that tax cuts would come, the dollar has conveyed doubt along with gold and bonds.As the dollar-bullish and euro-bearish political dynamics played out, monetary policy expectations have provided a more direct leitmotiv to currency moves.The euro is under pressure on all sides: The political story is bearish for the euro,…

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Markets News Regulators Stocks 

Stocks rise on ECB plan to scale back asset buys, U.S. budget blueprint

“Stocks in Asia closed mixed, while European stocks held steady at a higher level after the ECB announcement” writes Markets Reporter for marketwatch.com. CELG, -19.80%  plummeted 19% after the company reported a third-quarter profit beat and revenue miss and lowered its 2017 profit and revenue outlook.The House of Representatives passed a budget blueprint, paving the way for the Senate to eventually pass a tax-cut package by simple majority. Source: marketwatch.com Share This:

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Markets News Regulators Stocks 

European stocks climb as ECB delivers open-ended tapering of bond purchases

“On Wednesday, the index fell 0.6%, a second consecutive decline” writes Markets Reporter for marketwatch.com. The reduction was anticipated as the eurozone economy continues to recover, but the bank is still dealing with stubbornly low inflation.Stubbornly low inflation and high unemployment are expected to have been factors in the ECB’s decision to stick with stimulus efforts.The index started to push higher ahead of the ECB announcement, on the back of a surge in Spanish equities.The British lender said third-quarter revenue fell 5% from a year ago, after its investment bank…

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News Regulators 

Treasurys see modest buying as ECB announces ‘dovish taper’

“The Spanish 10-year yield TMBMKES-10Y, -5.22% plunged 8.1 basis points to 1.560%, while the Italian 10-year yield slipped 9.2 basis points to 1.970%” writes Mark Decambre for marketwatch.com. The 2-year Treasury yield TMUBMUSD02Y, -0.49%  was at 1.603%, versus 1.608% late Wednesday, while the 30-year Treasury bond yield TMUBMUSD30Y, -0.30%  was yielding 2.931%, compared with 2.954% in the previous session.The yield on the 10-year Treasury note TMUBMUSD10Y, -0.41%  was at 2.423%, compared with 2.444%. Source: marketwatch.com Share This:

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News Regulators 

ECB Trims Monthly QE Pace to €30 Billion, Confirms Dovish Stance on Rates

“The Governing Council continues to expect the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases,” the statement added” writes Martin Baccardax for thestreet.com. The European Central Bank said Thursday that it will trim the pace of its quantitative easing program, while keeping its key interest rates unchanged, and continue purchasing government, corporate and agency bonds for a further nine months. Source: thestreet.com Share This:

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GBP News Regulators 

Barclays slumps the most since Brexit vote as FTSE 100 steadies ahead of ECB

“Pound strength can hurt shares of multinational companies, which are heavily weighted on the FTSE 100” writes Markets Reporter for marketwatch.com. U.K. stocks steadied around a three-week low Thursday, but Barclays PLC shares were under pressure following the bank’s third-quarter earnings report. Source: marketwatch.com Share This:

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Markets News Regulators 

Why Italy faces worst shock in Europe as ECB prepares to taper bond buys

“That means the ECB has not only bought pretty much all new bonds issued in Italy since 2015, but also existing bonds from other investors” writes Markets Reporter for marketwatch.com. Read: Mario Draghi needs to avoid a ‘taper tantrum’ when the ECB meets “There are pretty clear trends over this [QE] period that the big sellers of Italian debt to the ECB have been foreigners, Italian households and Italian retail investors.The central bank has purchased 300 billion euros ($352.9 billion) of Italian bonds under the program, which is more than…

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