Takeaways From the ECB's Policy Announcement

Takeaways From the ECB's Policy Announcement

European Central Bank head Mario Draghi expressed concern about U.S. President Donald Trump's announced trade measures, saying the immediate spillover "is not going to be big" but that "unilateral decisions are unsafe". Treasuries advanced, while the dollar rose.

But Bank of Ireland slipped 2.2 per cent to €7.28. while Permanent TSB, drinks group C&C and paper and packaging group Smurfit Kappa were also among the fallers.

Ahead of the European Central Bank's second policy meeting of the year, the big question for investors was whether it would drop a pledge to increase bond purchases if the outlook for inflation worsens.

The basic materials sector suffered on worries over the threat of a global trade war curbing economic growth and metals demand.

News that U.S. President Donald Trump is prepared to meet North Korea's Kim Jong Un in what would be the first face-to-face encounter between the two countries' leaders helped ease fears about geopolitical tensions, denting safe-haven bonds. "You have some people concerned that they're going to be put in place, then you get a headline overnight talking about countries that might receive exemptions".

Wolfgang Kiener, senior analyst at BayernLB, told CNBC via email: "Given only a slow increase of core inflation, we expect the European Central Bank to reduce QE from October on to 15 billion euros per month and to stop it altogether at the end of year". The ECB's surprise change in language signaled its confidence in the euro area economy even as the concerns rumble on.

"We are convinced that disputes should be discussed and resolved in a multilateral framework", he said, warning that "unilateral decisions are dangerous".

A notable hawkish spin has emerged at multiple central banks in recent months.

The S&P 500 Index was mixed in trading almost 20 per cent below average as the president appeared close to signing orders for new steel and aluminium tariffs on major trade partners. IT10YT=RR The pan-European STOXX 600 hit a fresh session high as Draghi spoke, up more than 1 percent, while euro zone stocks.STOXXE were also at a session high and up a similar percentage.

Trump wants 'concrete actions' before meeting North Korea's Kim: White House
Short said the administration was cautious about the meeting, but Congress was responding with "excitement and encouragement". On Friday, Tillerson drew a distinction between "talks" and "negotiations", said Trump would engage in talks with Kim.

Andre Ayew Charges Teammates To Build On West Ham Victory
The Ayew brothers have been backed to cause double trouble and free Swansea from their Premier League relegation worries. The players need to show a wee bit, but I think they are good enough to do that.

At least 8 inches of wet, heavy snow on the way
Snow will fall quickly, too: precipitation could occur at a rate of 3 inches per hour, per the National Weather Service. Wednesday morning, energy transfers from the primary low to a developing coastal low east of the Delmarva Peninsula.

The U.K.'s FTSE 100 Index rose 0.6 percent.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan had risen 1.0%, while in Japan the Nikkei gained 0.5%.

The dollar's recovery was stoked by Wednesday's data on US private hiring and labor costs that reinforced the view of underlying strength in the economy.

The euro fell 0.8 percent to $1.2315.

For 2020, the inflation forecast was raised to 1.7 percent from 1.5 percent.

The dollar traded at 106.17 yen, little changed in Europe, keeping some distance from its 16-month low of 105.24 touched on Friday.

The MSCI Emerging Markets Currency Index fell 0.4 percent, the largest fall in a week. The gap between five and 30-year bond yields DE5YT=RR DE30YT=RR was wider at 125 bps, having hit its tightest since November 2016 on Thursday at around 121 bps.

US West Texas Intermediate (WTI) crude futures were just under US$61 a barrel, down 0.3%, while benchmark Brent was 0.5% lower at US$64 a barrel.

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