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Britain launches airstrikes in Syria

Published Thursday, December 3rd, 2015

The ECB is all but set to deliver an early Christmas present at today’s eagerly-anticipated meeting after yesterday brought with yet more evidence of anaemic eurozone inflationary pressures. The latest batch of weak inflation data revealed that the bloc’s annual headline rate was unchanged in November from the previous month at a paltry +0.1%, undershooting expectations of a rise to +0.2%. Mario Draghi is now seen as having the ammunition he needs to launch a slew of fresh stimulus measures with expectations that he will cut deposit rates further into negative territory as well as extending the scale and horizon of the ECB”s QE programme. Such is the hype that markets may be in line for a major disappointment should the measures fall short of the expected all-out assault.

As eurozone economies prime themselves for the delivery of additional monetary easing, the contrasting fortunes with the US were reinforced by a Janet Yellen speech in which she maintained her hawkish stance and gave her backing to the country’s economic recovery. Her positive outlook was mirrored by a fellow Fed policymaker who described the case for tightening policy this month as “compelling”. Meanwhile, prospects for a solid non-farm number on Friday were given a helping hand by a robust US private-sector employment report which showed the pace of job creation rose to a five-month high in November after the net addition of 271,000 positions. With Fed rate normalisation looming large, stocks on Wall St took a dive and the dollar index powered to a fresh 12-year high before paring back some of its gains.

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Posted by Stephen Brennock

Stephen Brennock joined PVM in 2013 after having worked as a project manager for a business development firm. He graduated with a degree in Business Management in 2007.