U.S. stock future indexes are fractionally lower after the ECB announces cut in deposit rate, jobless claims climb 9,000 to 269,000 which in turn investors saw the US dollar slashed to $98.27 down from 100.56.
Markets are expected to open lower with high volatility periods during today's session.
Here is the current market situation from CNN Money
European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.79% while London's FTSE 100 is off 1.01% and France's CAC 40 is lower by 0.12%.
FRANKFURT (Reuters) - The European Central Bank cut its deposit rate on Thursday in its latest effort to revive lending and inflation in the euro zone and said it would announce further policy action later in the day.
NEW YORK (Reuters) - BillÂ Gross, the closely watched bond investor, on Thursday said low interest rates are keeping alive "zombie corporations" that are unproductive and warned investors to de-risk portfolios into the new year.
(Reuters) - U.S. stock index futures were higher on Thursday, a day after Wall Street closed sharply lower following hawkish comments from Federal Reserve Chair Janet Yellen that hardened expectations of an interest rate hike this month.
(Reuters) - Dollar General Corp , the No.2 U.S. discount retailer by store count, reported lower-than-expected quarterly net sales, saying the retail environment was similar to the preceding quarter when it said consumers were holding back on spending.
BRUSSELS (Reuters) - EU antitrust regulators will investigate McDonald's tax deals with Luxembourg which enabled the U.S. fastfood chain to escape paying taxes on European franchise royalties from 2009, in a move which could lead to hefty back taxes for the company.
AMSTERDAM (Reuters) - Fiat Chrysler Automobiles (FCA) investors on Thursday approved the demerger of Ferrari from the group, paving the way for Italy's Agnelli family to become the luxury sportscar maker's biggest shareholder.
Contrary to what you might have read over at FT, Mario Draghi met (but certainly did not exceed) market expectations for a depo cut, moving 10 bps further into NIRP-dom in a desperate attempt to get inflation moving in the "right" direction and get a leg up in the global currency wars. Unfortunately, the market was looking for more and so, the EUR surged after the announcement.
Now, the fireworks can begin as the market will be glued to the presser in hopes Draghi will make up for not going with a 20 bps cut by over-delivering on QE expansion/extension.
Over-promise and under-deliver appeears to have been the Draghi meme as the ECB chief's loss of control of market front-running has left traders rapidly reversing their buy-the-rumor positions. EURUSD is spiking higher, Bund yields - most focused at the short-end - are surging, DAX is dumping, and US equity and bond markets are being sold. USD weakness has sparked gold and crude strength. We are gonna need a lot more jawboning in the press conference to save this...
Oil loves the weaker USD, stocks and FX carry not happy, Treasuries dumped on Bund arb...
In what may have been the most shocking ECB announcement in recent history, moments ago the ECB cut its deposits rate by 10 bps to -0.30%, just as expected.
From the ECB press release:
At today's meeting the Governing Council of the ECB decided that the interest rate on the deposit facility will be decreased by 10 basis points to -0.30%, with effect from 9 December 2015.
The interest rate on the main refinancing operations and the interest rate on the marginal lending facility will remain unchanged at 0.05% and 0.30% respectively.
Further monetary policy measures will be communicated by the President of the ECB at a press conference starting at 14:30 CET today.
But while the rate cut was not unexpected, and was very much in line with consensus, what shocked the markets is that precisely 9 minutes before the ECB's official announcement, the Financial Times, now owned by the Nikkei, reported that instead of a rate cut, the ECB had left its rate unchanged:
Policymakers on the governing council left the deposit rate, which applies to a portion of banks' reserves parked at central banks across the currency area, at minus 0.2 per cent.
Markets had priced in a cut of between 0.1 and 0.2 percentage points.
The main refinancing rate remained at 0.05 per cent.
Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
Econintersect wants your comments,
data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com