HoonSmart.com >> KT Securities Zmico analyzes the results of the European Central Bank meeting resolved to maintain the policy interest rate Significantly lower QE as expected, boosting European stocks, while the US weekly first-time unemployment claims fell more than expected. Increases the chance of Fed doing QE Tapering faster.
KT Zmico Securities reported that the European Central Bank (ECB) decided to maintain the policy interest rate and reduce the QE volume, which is in line with most analysts’ expectations. It is expected to reduce government bond purchases from an average of 80 billion euros per month. Down to the 2021 average of 60 billion euros per month.
The ECB did not announce an increase in inflation. After a 3% jump in August, signaling it is ready to adjust all tools appropriately to ensure inflation stabilizes at 2%.
As for the impact after the ECB’s policy announcement, the US dollar on the Dollar Index weakened slightly to 92.5 after hitting a two-week high of 92.8, while European equities turned slightly negative to positive DAX+0.01% CAC40. +0.15%
The U.S. reported its first weekly jobless claims, a lower than expected, giving the Fed an opportunity to QE tapering faster. By the end of the year, most recently, Dallas Fed Chairman Kaplan has maintained his support for the Fed should announce QE Tapering at its September meeting. New York Fed President Williams signaled similar to Fed Chairman Powell that QE tapering will begin by the end of the year.
