The week in markets – June 8th
The market view
Britons go to the polls today to decide the outcome of the snap election brought forward by Theresa May only weeks ago. Markets had bet on a Conservative victory after Labour was heavily defeated in local elections, but now polls have shown the gap has significantly narrowed between both parties. Due to this gain for the Labour party, analysts expect the Pound to come under pressure from the uncertainty generated by a potential new government in the midst of Brexit negotiations.
invstr players are more
OPEC has been in the firing line again this week. Concerns that the cartel
invstr players are fairly positive about
Former FBI Director James Comey is testifying before the US Senate today about the
Players on invstr are slightly bearish on US treasury yields, implying that uncertainty will continue into the future:
Elsewhere, another market moving event took place today. The European Central Bank under Mario Draghi has increased its forecasts for economic growth in the eurozone but kept interest rates on hold. Draghi also hinted that there was no need to cut rates further, in what investors will perceive as a vote of confidence in the recovery of the bloc.
He told a press conference: “We are now confident that inflation will converge with our objectives.” The ECB now say they expect growth across the eurozone to be 1.9% in 2017 compared with its March forecast of 1.8%.
Earlier on Thursday, the Eurostat statistics agency had said the eurozone economy had grown at its fastest rate in a year during the January-to-March quarter. At that rate, countries that use the single currency (Euro) would see growth at 2.3% this year, nearly double the rate of the US, which is expected to grow a weaker 1.2%.