Dow Jones Industrial Average (DJI), ECB Reaches Policy Decision (EUR)
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Summary:
- Markets are skeptical around tightening financial conditions.
Dow Jones Index falls again
Dow Jones fell by almost 0.7% on Thursday. Stocks on the Dow Jones continued to experience losses during Thursday’s trading day. Investors are continuously looking for clues around how the economy is performing amidst the tighter financial conditions and how aggressive the Federal Reserve will be regarding interest rate hikes before a potential pause.
DJI Price Chart
ECB interest rate decision
On Thursday the European Central Bank (ECB) announced a landmark decision that warned the end to the era of negative interest rates in Europe is on the horizon. ECB president Christine Lagarde made it clear that there is intent to retain optionality in the forthcoming decisions around interest rates, whilst indicating there is a preference for a slow pace of interest rate increases in the months and quarters ahead.
The ECB decision outlined that there would be a 0.25% increase in all of its interest rates, and gave carefully worded guidance that created space to proceed in increments of 0.50% or larger soon after.
Sources: finance.yahoo.com, pounsterlinglive.com
