🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Morning Bid: ECB to cut, markets want clues on next move

Published 10/17/2024, 12:33 AM
Updated 10/17/2024, 12:35 AM
© Reuters. A view of European Central Bank (ECB) headquarters in Frankfurt, Germany July 18, 2024. REUTERS/Jana Rodenbusch/File Photo
EUR/USD
-
RTO
-
ASML
-
NFLX
-
TIOc1
-

A look at the day ahead in European and global markets from Tom Westbrook

The European Central Bank is expected to make its first back-to-back rate cut in 13 years on Thursday. With that in the price, the policy outlook will be traders' focus and it will need to sound pretty dovish to drive the euro lower still.

The common currency is already down 2.4% for October and rates markets are pricing more cuts in Europe next year than in the U.S. - even though U.S. rates sit above 4.75% and European rates are at 3.5%.

Results at chipmaking giant TSMC could also move markets, especially after a disappointing outlook from chip equipment supplier ASML (AS:ASML) set off a sharp fall in semiconductor shares earlier in the week.

TSMC profit is expected to have leapt 42% in the third quarter to just over T$300 billion ($9.3 billion), on soaring demand for artificial intelligence applications. It will give fourth-quarter revenue guidance in U.S. dollars.

Earnings at pest control company Rentokil are due in London and could be an indicator of global economic conditions. The company's UK shares have slid precipitously to more than four-year lows.

U.S. retail sales data and earnings at Netflix (NASDAQ:NFLX) will also be parsed for insights on consumers' mood.

Asia trade on Thursday was reasonably steady but marred, yet again, by disappointment with Chinese authorities who announced policy measures far short of what markets have been hoping for. Beijing promised easier access to credit for builders to complete unfinished housing projects.

Iron ore prices and real estate shares slid in China, while the Australian dollar - which had caught a boost from stronger-than-expected jobs numbers - pared early gains. [MKTS/GLOB]

Key developments that could influence markets on Thursday:

© Reuters. A view of European Central Bank (ECB) headquarters in Frankfurt, Germany July 18, 2024. REUTERS/Jana Rodenbusch/File Photo

- ECB policy decision and news conference

- U.S. retail sales

(By Tom Westbrook; Editing by Edmund Klamann)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.