Global Markets: ECB slows the stock down

The shares did not change much after the European Central Bank ignored further reductions in interest rates without giving early signs of stimulus program. Citizens in Britain retreated due to shock risks that could result in possible outcomes as citizens go to the polls to vote in general elections.

European stocks had early gains while maintaining high levels of US index futures following the European Central Bank’s policy decision. The markets are waiting for the statement that former FBI President James Comey will give statement to the Senate of the USA.  The sterling weakened and the UK government was sold at the risk that the parliament would be hung in England.

According to information from several euro-zone officials related to the issue, the European Central Bank’s President Mario Draghi drew a weaker inflation outlook at a press conference held in the evening on 8th June 2017 by raising expectations for growth outlook. Patrick O’Donnell, senior investment manager at Aberdeen Asset Management, said policymakers would hesitate to give up the incentive policy until they receive more evidence of recovery.

Investors are waiting for the results of the selection made in the UK. The coffers will close at 22:00 with the UK time today.

Comey published the text he prepared for his speech on Wednesday at the Congress. The former FBI Director, in this interview, said US President Donald Trump wanted him to stop the investigation about former National Security Adviser Flynn.

What the political developments brought to the currencies and the stocks?

The Bloomberg Dollar Spot Index, which tracks the US currency against 10 major currencies, rose 0.2%. The pound fell 0.2% against the dollar to 1.2937, while the euro fell 0.2%.

Stoxx Europe 600 Index dropped down 0.1 percent and the FTSE 100 fell 0.3 percent. Standard & Poor’s 500 (S & P 500) index futures contracts climbed 0.1 percent following a 0.2 percent rise in the benchmark index on Wednesday.

Petrol gained momentum after making its fastest decline since February 2016 after surprise in US stocks. West Texas Oil (WTI) rose 0.6 percent to $ 46.46 per barrel. Gold price fell 0.4 percent to 1,282.49 dollars per ounce.

The interest rates of US Treasury yield of 10-year maturity increased by two base points to 2.2%. Indicator UK treasury interest increased by 4 basis points to 1.04 percent and was the fastest growing interest in Europe. The interest of German treasuries increased by one base point.

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