ECB cut fuels appetite, Netflix up 5% on strong results [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

The European Central Bank (ECB) lowered its interest rates by 25bp yesterday, in a widely expected and priced in move. Chief Christine Lagarde sounded optimistic about the disinflationary process. The expectation now is that the ECB will cut its rates at every policy meeting until March. Next stop: December.

As such, the Stoxx 600 gained and the euro sold off after the ECB decision. The EURUSD hit 1.0811 but the pair’s weakness was partly due to strong-looking economic data from the US. Corporate data is also on the bulls’ side. The stronger-than-expected TSM and Netflix earnings defy the waning need for unnecessary Fed cuts.

Elsewhere, the latest data from China printed a slower-than-expected growth in the latest quarter, but industrial production and retail sales jumped more than expected in September. The CSI is set to close the week on an improved note and US crude should see support near $70pb level.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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