Cistran Finance Exploring the Spirit of Capitalism's New Frontier

Friday, November 16, 2018

Uncertainty over ECB weighs on global shares

Stock markets around the world edged lower on Tuesday as uncertainty over the European Central Bank's next policy move caused stock markets around the world to edge lower on Tuesday.

Investors are divided on how the ECB may decide to tackle what is set to be very subdued growth across the region throughout 2014, according to European Commission forecasts, Reuters reports.

"I wouldn't be surprised if we get a rate cut, just to send a signal," Markus Schomer, the chief economist at fund manager's PineBridge Investments, said, according to Reuters. "A rate cut could at least help in lowering the value of the euro."

Investors are now awaiting Friday's U.S. October non-farm payrolls data to see if the unemployment rate eases from the current 7.2 percent. Economists in a Reuters survey expect the rate to have edged up. The Fed has promised to hold rates ultra-low at least until unemployment drops to 6.5 percent.