Thursday, 7 June 2018

Markets rise as ECB seen moving towards QE exit

Markets were mostly higher on Wednesday.

The S&P 500 rose 0.9 percent and the Nikkei 225 rose 0.4 percent. However, the STOXX Europe 600 was flat.

Comments by two ECB officials on Wednesday indicating that the central bank will start intense discussions about winding down its massive bond-buying program when policy makers meet next week was a focus of attention.

Neil Wilson, chief market analyst at Markets.com, suggested that “volatile Italian bond yields and softer economic data is not going to dissuade the ECB from walking the fine line towards the exit”.

However, some analysts remain optimistic.

“We’re still in the stage of the economy where rising rates reflect stronger economic growth, as opposed to central banks trying to combat inflation,” said Kate Warne, investment strategist at Edward Jones.

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