Markets close on their lows after ECB comments $AUDUSD

  • As the market eagerly awaits the outcome of the EU summit, investors were disappointed by comments made by ECB President Mario Draghi that the ECB would not raise its purchases of bonds from Europe’s debt ridden members. The ECB also moved to cut the interest rates by 0.25%
  • The markets attention now turns to the important EU Summit taking place in Brussels. Investors are now looking to officials to produce something concrete so as to stabilize the region and allow the region time to recover
  • Improving US economic news was again overshadowed by events in Europe. Weekly Jobless Claims fell 23k to a seasonally adjusted 381k jobs. This is the lowest level in 9 months and surpassed estimates of 381k claims. Wholesale Inventories were also stronger up 1.6%
  • Leading the losses on the Dow were JPM, BAC, AA, INTC and DD which fell 5.24%, 5.09%, 4.34%, 3.70% and 3.24% respectively
  • DOW –1.63%, S&P500 –2.11% and NASDAQ –1.99%
  • USD was stronger as markets retreated to the safety of the USD and US bonds. The AUD reached a high of 1.0379 before falling away
  • Gold fell heavily on I/R announcement down 1.8%, Spot Crude fell 2.1%
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