As Reuters reported:
The euro hung onto hefty gains in Asia on Friday after the European Central Bank eased aggressively but suggested it was running out of room to cut interest rates, even if other stimulus options remained.
The muddled message sent European bond yields surging and snuffed out a nascent rally in risk sentiment, leaving Asian share markets at a loss on how to react.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.32 percent, while Australia dithered either side of flat.
Japan's Nikkei .N225 took a blow from a rise in the yen and slipped 0.9 percent, though that was above early lows.
Shanghai stocks .SSEC eased 0.8 percent, while China's central bank underlined its commitment to a firm yuan by fixing the currency at the high for this year.
Markets went on a wild ride overnight after ECB chief Mario Draghi suggestxed there were limits to negative rate policy.
"From today's perspective and taking into account the support of our measures to growth and inflation, we don't anticipate that it will be necessary to reduce rates further," proved to be the offending sentence.
Gold and oil took their leads from the statement with the yellow metal hitting a 13-month high at $1282.51 an ounce and both Brent And Texas Intermediate edging higher.
No comments:
Post a Comment