Rating agency Standard and Poor's said it did not expect the European Central Bank to switch away from its supportive monetary policy before 2018, despite signs that inflation pressures are beginning to return.
This morning we had data from both the UK and Eurozone, while the Bank of England governor Mark Carney was speaking to a committee of MPs on UK inflation and growth outlook, and his future at the bank.
European equity markets are expected to open a little higher on Tuesday following a mixed session in Asia overnight, as traders await data from the euro area this morning while maintaining a little caution ahead of Fed Chair Janet Yellen’s Jackson Hole speech at the end of the week.
It didn’t take long for investors to understand that more stimulus than expected following Thursday’s European Central Bank meeting was likely to reset the tone. So much for the recent plunge in oil prices and how it gave global stock markets a bearish tinge to start the year.
Relative calm returned to world markets on Friday after a week that gave dollar/yen its biggest smashing since 2008, wiped billions off share prices and saw a stampede into top-rated government bonds and gold.