Daily Report

19 de Junho de 2019
Daily Report 19.06.2019
  • Stock indices rose across the globe after Draghi said in Sintra's conference that more stimulus will be necessary in case there is no improvement in the risks to the economic outlook. Later, a Trump tweet saying that trade negotiations with China will resume soon and that he will meet Xi Jinping in the G20 summit added optimism in stock markets.
  • Draghi's words drove euro area sovereign yields down, as the odds of an interest rate cut in the coming months have increased substantially. In that event, the ECB President suggested they could also implement measures to compensate for the adverse effects that negative rates may have for the financial system, such as a tiering scheme.
  • Today, investors will pay close attention to the Fed statement and press conference, where a more dovish communication is expected, to the speeches given in Sintra's ECB conference (Coeuré and Draghi, among others) and to the Bank of Japan monetary policy decision.