Global markets are locked in the European Central Bank (ECB) meeting tomorrow (Thursday). As it is known, various geopolitical developments remain on the agenda with the emerging news about the new type of coronavirus (Covid-19) epidemic and the treatment of the disease that has been going on for a long time. However, the new monetary policy strategy of the US Federal Reserve (Fed) and the ECB’s meeting to be held tomorrow are expected as an important development in the world of economy.
Developments Are Expected Curiously
This week’s big event for global markets is tomorrow’s meeting of the European Central Bank. The euro’s rapid rise in recent months has caused alarm bells in the ECB, and policymakers worry the currency’s strength will stall the bloc’s economy and drive prices down. At the end of the meeting, ECB is not expected to make any changes in interest rates. However, it is anticipated that some strategies may be changed due to the bond purchase program and the appreciation of the euro.
According to economists, he states that even if not now, the bank may decide to take various actions from now on due to the appreciation of the euro. ING Group Chief Economist Peter Vanden Houte predicted that if the euro’s appreciation could not be stopped, the bond purchase program could go up.
The negotiations between the European Union and Britain have yet to make any tangible progress. For this reason, the issue of reintroducing Brexit without a deal creates pressure on the markets. For this reason, the decisions to be taken by the ECB at the meeting tomorrow and the statements of ECB President Christine Lagarde are in the focus.
Markets Watch Negative, Leading by Technology Shares
The New York stock exchange started yesterday with a sharp decline due to continued sales in technology stocks. According to the information obtained from AA, Dow Jones index decreased 2.25%, S&P 500 index decreased 2.78% and Nasdaq index decreased 4.11%.
On the other hand, the news flow on Covid-19 treatment and various geopolitical developments, especially in the Eastern Mediterranean, remain on the agenda. According to analysts, the course of technology stocks may determine global risk for a while.