European Markets Mixed Awaiting ECB Decision Later This Week

European stock markets were mixed on Monday during a volatile start to the trading week ahead of a crunch Thursday meeting of eurozone monetary policy makers.

Indices lurched after modest gains across much of Asia after the Basel-based Bank of International Settlements likened movements in global markets to a “gathering storm” and suggested that central banks were running out of tools to spur growth. Its quarterly report came before a Thursday meeting of the European Central Bank at which policymakers are seen likely to cut benchmark rates to minus 0.4% from 0.3%. 

In China, the government reduced its growth forecast to between 6.5% to 7% for this year, after the economy expanded by 6.9% last year. The new range was delivered by Premier Li Keqiang at the annual parliamentary session known as the National People’s Congress. 

By mid-morning in London, the FTSE 100 had dropped 0.42% to 6,173.34 as dual-listed mining groups BHP Billiton (BHP)  and Rio Tinto (RIO)  lost the strong momentum they had gained during the Sydney trading session to trade lower. 

In Frankfurt the DAX had edged up 0.08% to 9,760.02 and in Paris the CAC 40 gained 0.05% to 4,438.16. 

via The Street

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza