ECB keeps rates unchanged | Calamatta Cuschieri

Market Summary

Maltese market closed in green on Thursday, with MSE total index ending the session 0.7659% higher to 9,841.483 points. Best performer was International Hotel Investments plc by adding 8.97% to close at 0.85, followed by Fimbank plc and Bank of Valletta plc. Both rose 1.59% and 0.92% to close at 0.64 and 1.10 respectively. Biggest fall of 13.98% was seen from Trident Estates plc, closing at 1.60. Followed by 3.23% shed of Medserv plc and 2.08% slid of Midi plc, which closed at 1.20 and 0.705 respectively.

European stocks were higher on Thursday as automotive stocks rose and European leaders pondered how long of an extension to the Brexit deadline they should grant. By the end of trading, the Stoxx 600 was 0.59% higher at 397.37, as Germany's Dax climbed by 0.58% to 12,872.10 and the French CAC 40 added 0.55% to 5,684.33. In London, the FTSE 100 was up by 0.93% at 7,328.25.

US stocks turned in a mixed performance on Thursday as the busiest day of the earnings season kicked off amid fresh headlines around the ongoing US-China trade talks. At the close, the Dow Jones Industrial Average was down 0.11% at 26,805.53, while the S&P 500 was up 0.19% at 3,010.27 and the Nasdaq Composite traded 0.81% higher at 8,185.80.

ECB keeps rates unchanged as Draghi waves farewell to Frankfurt:

The European Central Bank (ECB) kept rates unchanged on Thursday – in what marks Mario Draghi’s last monetary policy meeting at the bank.

The central bank also kept its forward guidance unchanged, suggesting that the main interest rates will remain at their current or lower levels until there’s strong evidence of a pickup in prices. The euro traded fairly flat, at $1.11 against the dollar.

The Frankfurt-based central bank had announced last month a massive stimulus package to boost the euro area. This included a 10 basis point cut to the deposit rate, new lending conditions to commercial banks as well as a second round of quantitative easing. The current ECB deposit rate is -0.5%, the lowest on record.

A slowing euro zone economy, persistent low inflation and the U.S.-China trade war had all pointed toward the central bank being forced to inject stimulus.

Draghi’s decision sparked some division within the central bank. Minutes from the meeting revealed that some of Draghi’s colleagues were not on board with the decision.

Nonetheless, the ECB repeated Thursday that the second round of QE will start on November 1 at a monthly pace of 20 billion euros ($22.3 billion) per month.

Mario Draghi will leave the European Central Bank (ECB) after eight years in charge of the institution that changed the way monetary policy is conducted in the euro zone.
 

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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