Euro hits 6-month high after Germany’s Merkel said it was ‘too weak’

The euro surged to a more than six-month high on Monday after German Chancellor Angela Merkel said it was “too weak,” while oil prices were bolstered by expectations that top exporters will extend supply curbs this week. A one-month high for oil futures LCOc1 on hopes of a supply cut by the Organization of the Petroleum Exporting Countries helped Asian shares to their best session in weeks. U.S. crude CLcv1 rose 0.61 percent to $50.98 per barrel and Brent LCOcv1 was at $53.80, up 0.35 percent on the day. European shares struggled to maintain momentum, but the U.S. stock market gained, lifted by defense and tech stocks, after U.S. President Donald Trump announced arms deals of up to $350 billion with Saudi Arabia over the weekend….

IMF-EU debt deal is what stands between Athens and new loans

Euro zone finance ministers may agree on Monday to release new loans to Greece but are likely to struggle to convince the International Monetary Fund to join the bailout by keeping the prospect of debt relief for Athens highly conditional. Greece needs new cash from the euro zone to avoid a default in July when it has to repay some 7.3 billion euros worth of maturing loans. To get the money, the Greek parliament approved pension cuts and tax hikes last Thursday…

ECB wants to avoid Fed’s 2013 ‘Taper Tantrum’

FRANKFURT — The European Central Bank is focused on avoiding a policy error committed four years ago by its big brother, the Federal Reserve. When the Fed indicated — on May 21, 2013 — that it would gradually wind down its $85 billion-a-month bond-buying program, asset prices and currencies plunged around the world in an episode known as the taper tantrum…

Trickle of jobs leaving Brexit UK has yet to turn into a flood

The trickle of jobs leaving Brexit Britain has yet to turn into a flood. Several big financial services firms have announced they will move about 9,000 jobs out of the country in order to safeguard their business once the U.K. leaves the European Union. That is not yet showing up in employment data. The jobless rate was just 4.6% in the three months to March 31, according to data published Wednesday…

Draghi defends ECB’s monetary stimulus at Dutch parliament

European Central Bank President Mario Draghi clashed with Dutch lawmakers on Wednesday over the ECB’s monetary stimulus, underscoring mounting pressure for a policy change from Frankfurt as the region’s economy heats up. Mr. Draghi’s rare visit to The Hague comes at a sensitive time for the ECB, which is considering when to start winding down its EUR60 billion-a-month bond-purchase program, known as quantitative easing. The program is currently due to run at least through December…

Global stock market near record highs, dollar slips after Fed’s rate hike

World stocks perched near a record high on Friday after a week when most of the world’s biggest economies either raised rates, or signaled hikes, in a strong sign of confidence about global growth and inflation. Investors turned their attention to a meeting of world finance chiefs in Germany starting Friday, where topics including economic reform, protectionism and exchange rates are expected to be on the agenda…

Grexit could be back with a ‘vengeance’ if Greece, EU fail to reach compromise

Greece’s embattled government has three weeks to break the deadlock in increasingly difficult talks with creditors or risk the country’s debt crisis resurfacing with renewed vigour. Faced with the dilemma of agreeing to additional austerity or calling fresh elections, prime minister Alexis Tsipras was weighing his options at the weekend…

German consumer prices rises 1.9% in January, hits 3-1/2 year high

German inflation picked up further in January, hitting the highest level in three-and-a-half years to touch the European Central Bank’s price stability target of just under 2 percent, preliminary data showed on Monday. The consumer price figures, published by the Federal Statistics Office, are likely to fuel the political debate in Germany, Europe’s biggest economy, about ending the ECB’s loose monetary policy…

ECB could soon plan exit from stimulus program: Executive Board member Lautenschlaeger

The European Central Bank could soon start planning an exit from its unprecedented stimulus program, Executive Board member Sabine Lautenschlaeger said on Tuesday, a rare public discussion of ending its asset buying scheme. A longtime critic of the ECB’s ultra-easy monetary policy, Lautenschlaeger has opposed many of the bank’s past easing measures and now becomes the only board member to publicly advocate an exit, a taboo for ECB President Mario Draghi, who has said that tapering, or winding down the 2.3 trillion euro ($2.5 trillion) program has not been discussed…

ECB keeps ultra-easy policy, calls for patience as economy regains health

The European Central Bank stuck to its super-easy monetary policy on Thursday, telling those calling for a tightening – like economic powerhouse Germany – to be patient as the bloc slowly regains its economic health. Pledging to look through an inflation blip fueled by rising oil prices, ECB President Mario Draghi acknowledged a string of surprisingly strong growth indicators…

EU’s economy not strong enough to be taken off life support: ECB

Europe’s economy is not strong enough to be taken off life support. That’s the view of the European Central Bank, which announced Thursday that it will extend its bond buying program until at least December 2017. But the pace of purchases — currently at €80 billion ($86 billion) a month — will slow to €60 billion ($64 billion) a month starting in April…

Fed’s lingering hesitation to pull the trigger on rate hike has pushed the dollar lower

The dollar is likely to rise a bit further, but a tame U.S. rate hike outlook at a time of waning firepower from those global central banks still easing policy will limit its gains, according to a Reuters poll of foreign exchange strategists. The Fed is still poised to pull the trigger in December, but its lingering hesitation in delivering even one rate hike this year after suggesting initially that four were in the pipeline has pushed the dollar down over 2 percent so far in 2016…

Newsletter

Zero spam.