This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The ECB decided to keep interest rates at all-time low 0.25%, in line with expectations, reiterating its support for the stimulus package even though it is becoming less effective. Stocks in the eurozone are broadly unchanged on the back of this.
The Spanish government has held a successful bond auction; the yield on the 10-year bond has dropped to its lowest level since September 2006. This news comes two days after Ireland’s bond auction was well received.
Investors are looking ahead to tomorrow’s non-farm payrolls report and unemployment rate announcement. Yesterday’s ADP employment report exceeded expectations, and today’s initial jobless report pointed to an improving jobs market. The current rate of unemployment in the US is 7%; if tomorrow’s report drops again we could see stocks trade higher.