Stock markets opened mixed but steady this morning as traders now brace for today’s ECB meeting after a volatile trading week so far. The recent mounting bearish drivers on stocks (drying stimulus, US-Sino tensions, Brexit talks and valuation issues in the tech sector) have made the mid-term outlook much harder to predict for investors. The strong market recovery seen between March and August is still on track, but its pace is slowing as the euphoria is slowly being replaced by a more “cautious” trading stance from investors.
A change in rates is unlikely but a new set of stimulus measures is widely expected to be implemented before the end of the year after some EU officials warned the downside risks have intensified amid no significant change in output nor inflation since June’s meeting. Today’s press conference from Christine Lagarde will be crucial for investors as they desperately need further support from the ECB to continue taking stock prices higher.
