Arab Today, arab today draghi reform warnings drag on stock markets
Last Updated : GMT 08:12:03
Arab Today, arab today
Arab Today, arab today

Draghi reform warnings drag on stock markets

Arab Today, arab today

Arab Today, arab today Draghi reform warnings drag on stock markets

European Central Bank chief Mario Draghi
London - AFP

World stock markets were lower Thursday as European Central Bank chief Mario Draghi again urged politicians to step up efforts to breathe new life into the tepid eurozone economy, analysts said.

Draghi's call came a day after the ECB began unleashing a radical company bond-buying programme, while Britain's looming EU membership vote also seemed to be heavily on investors' minds.

"Draghi?s warning that governments are not doing enough to stimulate growth feeds into the belief that the recovery is going to be extremely slow and weak," Craig Erlam, senior market analyst at OANDA trading group, told AFP.

"The other is that in making this speech, Draghi appears to be suggesting that the ECB is nearing the limit of what it can do, which may indicate that the central bank won't be as aggressive with future stimulus as they have in the past."

Draghi earlier told the Brussels Economic Forum that there were "many understandable political reasons to delay structural reform, but there are few good economic ones".

"The cost of delay is simply too high," he warned.

US stocks followed European markets into the red.

Germany's DAX led the main European bourses lower, closing 1.3 percent down. The FTSE in London was 1.1 percent lower, while shares in Paris's CAC were 1.0 percent off.

Analysts at Aurel BGC said that, ahead of an upcoming US Federal Reserve meeting "but especially before the British referendum, the trend should remain uncertain".

- British bond low -

Mark Vickery, of Zacks Investment Research, said oil prices had been "a big factor" in helping to drive markets higher in recent days. But prices retreated after hitting fresh highs for the year on Thursday.

Bank shares in the US also pulled back as expectations diminish that the Federal Reserve will soon lift interest rates.

The chances of a mid-year Fed rate hike have been crushed by data showing the US economy added a quarter of the jobs expected in May.

The central bank meets next week but dealers do not forecast a rise until September at the earliest.

In foreign exchange, the euro was down against the dollar, while the rate on British 10-year government bonds hit a new all-time low at 1.220 percent.

"The ECB?s bond buying programme is at full throttle, which has helped to push benchmark government bond yields to record lows with the German 10-year being just above zero and UK?s equivalent dropping to a fresh low today," said Fawad Razaqzada, market analyst at City Index.

Jasper Lawler, an analyst at CMC Markets (LSE: CMCX.L - news) , said a warning from US billionaire investor George Soros in the Wall Street Journal on Britain's EU future ahead of the June 23 referendum was heaping further pressure on stocks.

"Mario Draghi warned of lasting damage without structural reforms whilst George Soros warned that a Brexit vote would cause the dissolution of the European Union.

"Neither Draghi nor Soros believe in imminent disaster but the comments are a sober reminder of the risks to health of the European economy," Lawler said in a note to clients.

The warnings chimed with a study by a Dutch government think tank that said the Netherlands would be hit hard if Britain leaves the EU, with a possible 1.2-percent fall in GDP by 2030 and a 10-billion-euro trade loss.

In Asia, Japanese stocks retreated on the back of a stronger yen, as traders consider the prospect of low US interest rates until the end of the year, while easing producer inflation in China offered hope for the world's number two economy.

- Key figures around 1545 GMT -

London - FTSE 100: DOWN 1.1 percent at 6,231.89 points (close)

Frankfurt - DAX 30: DOWN 1.3 percent at 10,088.87 points (close)

Paris - CAC 40: DOWN 1.0 percent at 4,405.61 points (close)

EURO STOXX 50: DOWN 0.9 percent at 2,992.54

New York - Dow: DOWN 0.4 percent at 17,936.07

Tokyo - Nikkei 225: DOWN 1.0 percent at 16,668.41 (close)

Shanghai - Composite: Closed for a holiday

Hong Kong - Hang Seng: Closed for a holiday

Euro/dollar: DOWN at $1.1327 from $1.1393 late Wednesday

Dollar/yen: DOWN at 106.52 yen from 106.99 yen

Pound/dollar: DOWN at $1.4473 from $1.4503

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today draghi reform warnings drag on stock markets Arab Today, arab today draghi reform warnings drag on stock markets

 



Arab Today, arab today
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 11:43 2017 Wednesday ,22 February

South Africa budget throws light on fractured ANC

GMT 11:35 2017 Wednesday ,22 February

British economy grows 0.7% in final quarter of 2016

GMT 06:04 2017 Wednesday ,22 February

Hammond closes in on budget goal

GMT 05:34 2017 Wednesday ,22 February

Euro zone economy outlook shines

GMT 04:10 2017 Wednesday ,22 February

US stocks finish at another all-time high
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday