It is D-Day for European stock traders and most benchmarks are already trading higher ahead of the highly anticipated ECB meeting, during which Mario Draghi is widely expected to boost market sentiment by proceeding with a rate cut and detailing a new set of measures to sustain the euro zone economy. But high expectations also mean high chances of disappointment and many investors still don’t believe Draghi will take any steps in his last meeting as ECB’s Chairman. This could potentially lead to volatility spike and significant price action on EUR markets.
Photo by Meredith Petrick.
In the meantime, investor appetite for “riskier assets” has already increased overnight, after President Trump provided China with a goodwill gesture by delaying the next round of tariff over 250Bln USD of Chinese goods, from the 1st of October to the 15th. China welcomed this move from Washington and is now said to be considering US farm imports, including purchase of Soybean and Pork. These goodwill gestures from both sides are being welcomed by investors as they confirm the de-escalation of the dispute, however, they do not represent a significant improvement. The two blocs are still currently having high-level discussions towards a final trade deal and further developments will come soon.
