As expected the ECB has maintained the level of its three interest rates and reduced the size of its asset purchase programme (APP). The refi rate is still at 0%, the deposit facility rate at -0.40% and the marginal lending facility rate at 0.25%. They will remain at this level… Read More »
As largely expected, the European Central Bank confirmed a plan for tapering its asset purchasing programme, reducing monthly purchases down from €60 billion to €30billion, from January and up until the end of September but beyond also if necessary. The majority of the reduction should be in government bond purchases… Read More »
In reaction to the German general election results, Timothy Graf, head of macro strategy EMEA at State Street Global Markets; and Elliot Hentov, head of policy and research – official institutions EMEA at State Street Global Advisors, offer their views. Graf comments, “This election was always going to be most… Read More »
In reaction to the UK Prime Minister, Theresa May’s speech in Florence today, Tim Graf, EMEA head of macro strategy at State Street Global Markets, offers his views. Graf comments, “After great anticipation, Prime Minister Theresa May’s Florence speech offered few specifics and even fewer surprises. The main takeaway for… Read More »
The three charts below show the ECB forecasts for GDP growth, the inflation rate and the core inflation rate. They have been updated today with the ECB meeting.Growth has been revised on the upside for 2017 but remains unchanged, compared to June, for 2018 and 2019. The inflation rate and… Read More »
The ECB has published an unchanged statement on its monetary policy. Mario Draghi’s speech was moderate showing that there is no hurry at the ECB in the monetary policy management. No signal on a possible change in the QE framework in the future. The ECB president said that a decision… Read More »
The European Central Bank (ECB) kept its monetary policy stance unchanged yesterday, maintaining the deposit rate at -0.4%, the main refinancing rate at 0.0%, the marginal lending facility at 0.25% and the size of its QE programme at €60 billion per month. President Draghi struck a positive tone in the… Read More »
Economic confidence indicators continue to point to a solid cyclical growth momentum across sectors and regions. Besides, global trade is showing early signs of improvement. Following numerous false starts in recent years, the current recovery looks stronger, more broad-based and more sustainable. That said, the significant difference between (soft) confidence… Read More »
State Street Global Exchange released the results of the State Street Investor Confidence Index® (ICI) for August 2017. The Global Investor Confidence Index decreased to 106.8, down 2.1 points from July’s revised reading of 108.9. The decline in sentiment was driven by a 4.9 point drop in the European ICI… Read More »
Investors should expect more subdued returns in the second half of 2017. Equity markets have rallied in all-but interrupted manner for twelve months and are showing some signs of fatigue owing to more demanding valuations and the closing out of a positive earnings season. While geo-political risk can and has… Read More »
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