Draghi boosts markets | Calamatta Cuschieri

European equities traded mostly higher on Thursday, despite being cautious ahead of the European Central Bank’s (ECB) policy decision and the follow up press conference. Despite this concern, the major European stock indexes, namely; London’s FTSE 100, Germany’s DAX and France’s CAC 40 posted gains during the session.

The major US stock indexes headed towards a record territory early in the day, this being led by greater gains in health care and technology companies. Consequently, the S&P 500 index, NASDAQ composite index, and the Dow Jones all traded marginally higher.

ECB leaves rates unchanged

Prior to the conference, it was forecasted that the European Central Bank was to stand pat. Having said that, investors were still looking for any possible hints that Mario Draghi, Chief of the ECB, might give regarding whether he could give a nod towards gradually lessening the ECB’s monetary stimulus program.

As forecasted prior to the conference, the European Central Bank stand pat, leaving the interest rates unchanged at 0%. With reference to the future of the €60 billion-a-month asset purchase programme, also known as ‘Quantitative Easing’, Draghi emphasised that the central bank is hesitant to jeopardise a recovery by tightening monetary policy too soon.

Following Mario Draghi’s speech, the Euro saw a sharp surge against both the Dollar and the Sterling.

Oil industry in the green

The oil industry was steady after reporting significant gains overnight following a higher than expected draw in US crude stocks. Most major players in the oil industry, including top guns Royal Dutch Shell, BP and ExxonMobil reported this rise.

For the first time since early June, Brent crude oil rose above $50 per barrel, this adding to the gains experienced in the previous session, when falling US crude and oil product inventories lifted the market.

Siemens, AES aim to develop Fluence in energy storage

German conglomerate company; Siemens AG experienced an increase in share price by 1.50% consequent to joining forces with electric power distribution company; AES Corporation, to create a new joint venture Fluence. Shares of Fluence traded 3.11% higher on this news.

Nike shares on the rise

Following Morgan Stanley’s prediction of a “big rally ahead” on new sneakers, Nike shares experienced an increase by 2.3% during Thursday’s session. Morgan Stanley believes that the American multinational corporation’s sales will continue to experience growth due to its new, highly innovative products. This news sent shares rallying.

Disclaimer:

This article was issued by Christopher Cutajar, Junior Investment Advisor at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is 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.