Equities Turn Lower Ahead of Jackson Hole
European markets are all trading in the red today – as Mario Draghi’s speech defends quantitative easing and the British Prime Minister seems to accept that EU laws will continue to influence UK even after Brexit.
Pound's eight-year low against euro and the eurozone PMI figures come in stronger than expected but ECB president Mario Draghi gives nothing away in a speech in Germany. Donald Trump's threat to end the North American Free Trade Agreement is fueling risk aversion once again.
Eurozone has reported a strong performance in its manufacturing sector but a weaker number for services. In August, the IHS Markit manufacturing rose from 56.6 in July to 57.4, better than the expected 56.3 and the highest level since April 2011. But in contrast, the service sector PMI fell from 55.4 in July to 54.9, its weakest growth for seven months.
The world’s largest advertising group, WPP, cut its full-year net sales outlook after a drop-in order from consumer goods companies. Weak trading in the US also caused the group to miss first-half targets. Its shares were more than 11 percent lower on the open as those poor results were accompanied by a warning about future growth.
A written speech by ECB chief Mario Draghi has been released today – talking about the financial crisis and central banks response to it. He said the eurozone’s bond-buying stimulus programme had been “a success”.
--- Written by Katie Pilbeam, DailyFX