European equities seen prior to ECB decision

European stocks may open higher on Thursday as investors have seen the economic threat from the growing case of Delta in the past Coronavirus variant.

The World Health Organization said Wednesday that highly contagious variants identified in 124 countries are expected to become the dominant strain of the virus in the coming months.

IMF Managing Director Cristalina Georgieva said economic recovery would be curtailed unless the pace of COVID-19 vaccination increased, with global growth forecasts for 2021 in April. He added that it would be the same about 6%.

The IMF will release the next Global Economic Forecasting Update on July 27th.

Central banks are expected to adjust their forward guidance, reflecting the new 2% inflation target adopted by the central bank under the new strategy announced earlier this month, with a focus on ECB policy later that day. Move on to the meeting.

The new strategy will allow the ECB to maintain record low interest rates for extended periods of time while allowing higher inflation.

Asian market It was on an upward trend as strong US earnings helped offset concerns about the economic consequences of a relapse of the coronavirus.

Gold fell as the dollar and Treasury yields rose. After a two-day rise, oil stabilized at close to $ 70 a barrel.

SpaceX founder Elon Musk says his electric car company Tesla will resume accepting Bitcoin if his rocket company owns Bitcoin and the mining industry uses more renewable energy. After that, Bitcoin rose above $ 32,000.

As the day goes on, corporate confidence figures, the ECB’s economic outlook, and forward guidance can influence sentiment. Eurozone consumer confidence figures will be released after the ECB’s press conference.

Across the Atlantic, transactions can be affected by weekly unemployment claims, existing home sales and reactions to reports on key economic indicators.

US stocks rose twice in a row overnight after a nasty start of the week for fear of a resurgence of coronavirus cases.

The Dow and S & P 500 rose about 0.8%, while the technology-intensive Nasdaq Composite index rose 0.9%. This is underpinned by strong earnings from some well-known companies.

European stocks rebounded on Wednesday as travel and leisure stocks rebounded after a series of recent losses.

The Pan-European STOXX 600 rose 1.7%. Germany’s DAX rose 1.4%, France’s CAC 40 index surged 1.9%, and the UK’s FTSE 100 rose 1.7%.

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European equities seen prior to ECB decision

Source link European equities seen prior to ECB decision

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