ECB decision day, more PMIs, and China closed for parade. Here are some of the things that people in markets are talking about today.
The governing council of the European Central Bank holds its monetary policy meeting in Frankfurt this Thursday. All 45 economists surveyed by Bloomberg expect there to be no change in interest rates announced when the decision is released at 7:45 a.m. ET. Markets will be watching Mario Draghi's press conference, starting at 8:30 a.m. ET, for any hints at further easing. The ECB will also release its latest quarterly economic forecasts following the press conference.
A purchasing manager's index of manufacturing and services for the euro area rose unexpectedly to 54.3 in August, the highest level since May 2011, London-based Markit Economics have said. Separately, U.K. services grew at the weakest pace since May 2013, with PMI coming in at 55.6, down from 57.4 in July.
China has a parade
Markets in China are closed Thursday and Friday for World War II commemorations, giving global investors a welcome break from the volatility driven by wild swings on the Shanghai Composite Index. Despite the holiday, China continues to crack down on those it wishes to use as scapegoats for the recent market turmoil.
Australian dollar slips below 70 cents
Australian retail sales unexpectedly fell 0.1 percent in July, the first drop since May 2014, with data for June also revised lower. The Australian dollar dropped below 70 U.S. cents on Wednesday, for the first time since April 2009, following a disappointing GDP report and the currency again traded below that mark this morning following the retail sales release.
JPMorgan Chase & Co. analysts have warned that global investment banks may see revenue drop 19 percent in the third quarter and have cut their earnings-per-share estimate for the industry through 2017. In a report published on Thursday, Kian Abouhossein wrote that recent strong turnover stocks and other assets "could decline materially once markets settle" as a recent surge in volatility recedes.
What we've been reading
This is what's caught our eye over the last 24 hours.
- These are a few of the stock charts that spook Louise Yamada.
- Bloomberg editorial: Hungary's xenophobia, Europe's crisis.
- London's finance sector is at risk if the U.K. quits the EU, say Commerzbank.
- In Iceland, you can watch rare whales by day and eat whale (rare) by night.
- Those inflation targets keep getting harder to hit.
- Matthew C. Klein takes another look at the Greenspan conundrum.
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