Thursday preview: ECB announces interest rate decision
European Central Bank (ECB) looks set to cut the refinancing rate at Thursday's highly anticipated council meeting following a batch of disappointing economic data.
European Central Bank (ECB) looks set to cut the refinancing rate at Thursday's highly anticipated council meeting following a batch of disappointing economic data.
Policymakers and investors have been waiting with baited breath for the bank's decision on interest rates.
Easing price pressures and weak economic figures have sparked hopes for a 25 basis-point cut in the ECB's key lending rating at its get-together.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
At the last council meeting in April, the ECB said it was ready to act after delivering a downbeat outlook on euro-area recovery.
Since the announcement, most survey data have pointed to an ongoing recession and need for the ECB to take action.
On Tuesday, a report showed a 12.1% rise in unemployment from February's reading of 12.0%. The consumer price index (CPI) also rose by 1.2%, down from a reading of 1.7% in March and the ECB's 2.0% target.
Last week the Markit Eurozone composite purchasing managers' index (PMI) for the month of April revealed a reading of 46.5, unchanged from the previous month.
A reading under 50 reading indicates contraction in activity. Th PMI was under the benchmark for the 19th time in the past 20 months with the exception of a marginal increase in January 2012.
Analysts expect the gauge of data to provide an excuse for the ECB to implement more stimulus and cut rates.
Thursday will also be a busy day on the company front with results out from British Sky Broadcasting Group, Legal & General Group, Rolls-Royce Holdings, BG Group and Royal Dutch Shell.
Thursday May 2nd
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (US) (13:30)
ECB Interest Rate (EU) (12:45)
PMI Manufacturing (EU) (09:00)
Q3
British Sky Broadcasting Group
GMS
Sula Iron & Gold
FINALS
Millennium & Copthorne Hotels
IMSS
Howden Joinery Group, Legal & General Group, Rolls-Royce Holdings, RPS Group, RSA Insurance Group
AGMS
ARM Holdings, Avocet Mining, Charles Taylor, Core VCT IV, Core VCT V, Fisher (James) & Sons, GKN, Golden Prospect Precious Metals Ltd., Inmarsat, Johnson Service Group, Juridica Investments Ltd., LSL Property Services, Millennium & Copthorne Hotels, Phoenix Group Holdings (DI), Reckitt Benckiser Group, Rolls-Royce Holdings, StatPro Group, Talvivaara Mining Company (CDI), Thalassa Holdings Ltd. (DI), Trap Oil Group
UK ECONOMIC ANNOUNCEMENTS
PMI Construction (09:30)
Productivity (US) (13:30)
FINAL DIVIDEND PAYMENT DATE
BlackRock World Mining Trust
Q1
Avocet Mining, BG Group, Inmarsat, Lancashire Holdings, Millennium & Copthorne Hotels, Royal Dutch Shell 'A', Royal Dutch Shell 'B', RSA Insurance Group, Shire Plc, Smith & Nephew
RD
-
Adidas, Nike or Jordans - could collectable trainers make you rich?
The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
By Chris Carter Published
-
Early bird ISA investors flock to global funds, India and the US
There’s been an increase in investors maxing out their ISA at the start of the new tax year. But where are they putting their cash and why does it make sense to be an early bird investor?
By Vaishali Varu Published