European markets opened higher on the final trading day of the week. Investors have cheered the big bazooka – QE package from the European Central Bank. Mr Draghi, surprised the markets yesterday when he announced the 60 billion euro of QE package each month yesterday. This is the first time that the ECB has launched this massive operation to tackle the inflation in the area.
So far the reaction is very positive on the back of this news and the European indices are trading higher. The Euro STOXX 600 index opened higher by nearly 0.6%. The president of the European Central Bank has shown his ultimate commitment to revive the growth in the euro zone while the global markets are digesting this news.
The Asian stock market has closed higher and the Hang Seng index was the best performing index during the session. The index closed with a gain of 1.32%. The Nikkei 225 index also closed higher with a gain of 1.06%. The euro has been under tremendous pressure on the back of this news however it has popped back above 1.14. The dollar index is trading in a positive session with a gain of 0.06%. Gold has given up some of its gains and has moved lower. The metal is down nearly half a percent and it is trading below the 1300 level. Crude oil on the other hand is sharply higher on the back of the ECB meeting and it is trading higher with a gain of 1.94%.
The economic data released today has shown that the French flash composite index for the month of January has fallen further with a reading of 49.5 and as this reading is below the mark of 50 so this represents recession.
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam