Draghi's Comments Cause Negative Sentiment In The Markets

On Thursday, key stock indices of Europe showed negative dynamics due to the statements of Mario Draghi. Besides that, investors’ decisions were influenced by the last protocols of the last meeting of the FOMC, which contained obvious hints on turning of the program of quantitative easing.

It should be noted that yesterday, the European Central Bank and Bank of England kept monetary policy unchanged, thus, according to Mario Draghi, rates will remain at a low level for a long time, but as for the present it is too early to say that the Eurozone is out of danger. Draghi also emphasized that unemployment remains at a high level, and dynamics in the sphere of crediting is still rather weak.

As a result, the main European stock indices finished the trading session with Great Britain's index (the FTSE 100) losing 0.5%, the French of CAC 40 became 0.8% easier, and the German DAX went to a minus also by 0.8%. The regional STXE 600 indicator, in turn, decreased by 0.4% and was closed on a level of 328.41 points.

Currency markets were also influenced by presented data and statements, which added to the strengthening of the Dollar. After the press-conference after the ECB meeting, we first saw further strengthening of the EUR/USD to a maximum of 1.3632, and then witnessed a kickback to a minimum at the level of 1.3548, ending the trading day around 1.3580. At the present time, the currency pair is traded on a level of 1.35988 and its further development can be influenced by the labor market figures today, if they are going to be positive. The next purpose of the pair is on 1.3550 and further on 1.35.

Nevertheless, today it is necessary to pay attention to the data on the labor market, which will be published in the second part of the day. Forecasts suggest that employment in the nonagricultural sector of the US is supposed to increase approximately by 200 thousand, and unemployment should remain at the former level of 7%. And last, but definitely not least, the factor bringing negative vibes to the markets has been the start of the season of corporate reports. Alcoa did not justify forecasts, the next in line to report are the banks.