This afternoon the ECB decided to leave all interest rates unchanged, but warned that when conditions will worsen it will expand the QE-programme. ECB is seeing economic improvements but still dampened due to sluggish reforms. Economic growth isn't seen yet in rising salaries or prices. Inflation is not expected to pick up the next months, but will rise in the medium long term. Trump made a second proposal to shut down Obamacare but just like the first time, the second proposal didn't get a majority in the Senate. The republicans which have a majority in the Senate weren't all in favour of the proposed adjustments which gave Trump another defeat. The financial markets didn't like the President to be 'toothless' and sold the USdollar against the euro which resulted in an exchange rate for the EUR/USD of over 1.15 for the first time in almost 2 years. This morning the BOJ made a statement in which they buy an unlimited amount of 10 year Japanese government bonds (JGB) and also increased the size of their program by somewhere between $440 million to $4.4 billion. This reaction from the BOJ came as the yields of government bonds worldwide were on the rise due to expectations of Central Banks withdrawing or limiting their quantitive easing. Target for the BOJ for 10 year yields is 0.00%. Italian government made a deal to bailout the troubled bank for an amount of €5.4 billion euro. This is besides the earlier rescue of €17 billion to unwind the different Veneto banks by the Italian government. The EU approves this state bailout because of the transfer of bad loans to a bad bank and capping the salaries of senior managers. There will be a 5 year restructuring plan being announced later today. |
PurposeMajor markets news headlines which captured the markets. Archives
March 2021
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