Financial Markets Update
European government debt has rallied following the ECB’s decision on Thursday October 26th to continue Quantitative Easing (QE) – albeit at a slower pace of EUR 30bn per month rather than the current EUR 60bn.
ECB dovishness has put downward pressure on the Euro as investors anticipate lower yields for longer due to the continuation of QE
Despite falling Spanish stocks due to Catalonia turmoil, the European Stoxx 600 hits a 5-month high on the back of a weak Euro
Yield on 2-year US Treasuries hits highest level since 2008 following strong economic data from the US
The price of Brent Crude tops $60 for the first time since 2015 on the back of strong global economic growth and output cuts from OPEC
Stronger than expected earnings from the tech sector in America drive the S&P 500 to its 50th record high of the year – with Amazon’s shares rising an astonishing 13% following the news.
The pound shows weakness ahead of the BOE’s meeting this week over perceptions of only a gradual tightening of monetary policy