European stocks fluctuate ahead of ECB decision
On Thursday, EU stocks kept swinging between profits and losses, as market participants were waiting whether the ECB would drop a hint at further stimulus for the EU’s economy or not.
The Stoxx Europe 600 closed -0.1% at 338.79, right after starting somewhat higher.
Later on, traders will learn the ECB’s long-awaited policy decision. Europe’s central bank is supposed to lower its deposit rate by approximately ten points, thus dragging it further into negative territory at -0.4%. There’s an alternative solution. The number one bank of Europe could drastically expand its monthly easing quantities purchases by 20 billion euros.
It’s apparent that many European chiefs, including Draghi, are assured that bold action is urgently required.
Considering the absence of the typical Weidmann position, the central bank of Europe might succeed in doing what was unreal in December. So, the EU’s primary financial institution will most likely deliver a good stimulus package the markets could get along with.
Meanwhile, the common currency sagged ahead of the upcoming decision, hitting $1.0971 compared to Wednesday’s value of $1.1005.