- German DAX rose ahead of the ECB meeting as euro fell
- The outcome of today’s meeting could be crucial for European indices
- The upward move is also supported by the record close on Wall Street
The EURUSD was steady at 1.1505 on Thursday morning, ahead of the ECB meeting later in the session. The single currency had spiked to 14-month highs this week on the back of apparently hawkish comments by ECB President Mario Draghi. The ECB is not expected to adjust interest rates on Thursday but it is projected to signal plans to slow down some of its asset purchases over the next few months.
Meanwhile, the second round of formal Brexit talks are set to continue on Thursday as negotiators from the EU and the U.K. meet in Brussels. Britain’s Brexit Secretary David Davis is expected to speak at a press conference later in the session.
As for Wall Street, U.S. stocks closed at record highs on Wednesday as investors digested key quarterly earnings. TheS&P 500rose 0.54 percent to close at 2,473.83, a record. The index also posted an intraday record. Vertex Pharmaceuticalsled the index higher, rising 21 percent. The S&P also received a boost from tech, which broke above its all-time high set in March 2000. TheNasdaq composite advanced 0.64 percent to end at a record of 6,385.04; it also notched an intraday all-time high. TheDow Jones industrial averagealso closed at a record, rising 66.02 points to 21,640.75.
In company news, Russia outfoxed European Union sanctions by delivering gas turbines made by Germany’s Siemens to the annexed Ukrainian region of Crimea. No Russian company, according to Reuters data, has ever got a Siemens turbine working without the help of the manufacturer. In this case, Siemens said the turbines were shipped to Crimea behind its back and is refusing to be involved, leaving Moscow to work out how to start them up to fulfill President Vladimir Putin’s promise to give Crimea stable power supply. SIemens stocks were among best performing in the morning.
DAX consolidates below the upward trendline that was broken last week. As long as 12300, a move towards previous highs should be expected.
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.