< Back to Trader Blog Articles

Mark My Word

  • Investment Manager
  • Blog post submitted on 3rd June 2014
Mvblog

Good Morning.

This week it’s all about Thursday’s ECB meeting. The countdown started right after last month’s MPC and is nearing its end, reaching its pinnacle on Thursday at 2pm CET time where ECB’s Mario Draghi is widely expected to be market-friendly and announce a fresh round of accommodative measures. Speculation is rife that negative interest rates are announced whilst a new tranche of LTRO, this time targeted at SMEs, is also on the cards. All eyes are clearly on the ECB right now as the market really feels that this is the opportune moment for Draghi and his time to be credible enough and at least, meet market expectations given how supportive markets (credit and equity) have been since the last ECB meeting. Anything short of market expectations could prove to be catastrophic for market prices.

This week started off with a flurry of PMI and ISM data. PMI manufacturing growth in the eurozone slowed to a six-month low in May as output growth in all nations, except the Netherlands, slowed, fuelling expectations that ECB is ready to counter-act this sluggish growth this coming Thursday. China on the other hand recorded a strong month in May, as manufacturing grew at the fastest rate in five months. On the third attempt, US ISM manufacturing data showed an improvement, albeit marginal and in line with expectations, from 54.9 to 55.4, following a crucial software error in the calculation of seasonal adjusted data.

Today, President Obama begins a four day European trip in anticipation of the G7 meeting which is due to commence tomorrow. This meeting was originally scheduled to be a G8 meeting held in Sochi, which meeting was eventually cancelled following Russia’s annexation of Crimea. On the data front, the market will be on the look out for encouraging signs in the shape of inflation and unemployment numbers today, which however are still expected to propel and reinforce the ECB’s resolve in easing policy on Thursday. Elsewhere, the Reserve Bank of India meets for the very first time today, whereby rates are expected to remain on hold.

Meanwhile, yesterday late in the day, tech giant Apple announced the new iOS 8 software for its iPhone and iPad devices. The software includes HealthKit, which allows users monitor their health and also serves as a data hub for fitness apps. The company also announced an updated version of its Mac operating system. The event follows last week’s announcement that Apple is in the process of buying headphones and music-streaming company Beats Electronics LLC for $3 billion.

Have a nice day!

Mark

The Calamatta Cuschieri Traders Blog is available daily on CC WebTrader. Other market coverage including coverage of the International Bond Markets is also available.

Important(Notices)
The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Calamatta Cuschieri & Co. Ltd. (CC) has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website.
This website is owned and operated by Calamatta Cuschieri & Co. Ltd (Co. Reg. No. C13729) of 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103, Malta. CC is licensed to conduct Investment Services in Malta by the Malta Financial Services Authority.