The European Central Bank held its record-low interest rates unchanged Thursday, a spokesman said, as analysts expected the bank to wait for a clearer picture to emerge of the Brexit impact before making any drastic policy changes.
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(Repeats to additional subscribers) * Speculation Fed officials could sound hawkish before blackout * Dollar/yen edges lower, down 1.8 pct for the week * North Korea prods investors towards yen, euro, dollar By Patrick Graham LONDON, Sept 9 (Reuters) – North Korea’s latest nuclear test pulled cash into the perceived safety of the Japanese yen and USA dollar on Friday, at the end of a week that has provided little clear direction for currency investors returning from US and European summer breaks. USA shares were set to drop at the open too, with Dow futures and the broader S&P 500 futures down 0.4 percent.
ASIA’S DAY: Japan’s benchmark Nikkei 225 rebounded from an initial drop to finish little changed at 16,965.76.
German 30-year bond yields rose six basis points, or 0.06 percentage point, to 0.57 percent as of 10:32 a.m.in London.
The ECB kept rates on hold and while maintaining the timetable for its quantitative easing programme, President Mario Draghi said that the possible extension of the programme had not been discussed, although bank committees had been ordered to consider options, sending European markets lower.
ENERGY: Oil prices lost some of their overnight surge, which followed a report indicating fuel stockpiles fell precipitously last week. Hong Kong’s Hang Seng rose 0.8 percent to 24,099.70, while the Shanghai Composite slipped 0.6 percent to 3,078.85. Benchmark U.S. crude shed 60 cents to $47.02 a barrel in NY.
ANALYST’S TAKE: “Investors in Asia will focus on two developments from the overnight session – the European Central Bank policy decision and the massive drawdown in USA crude stockpiles”, says Bernard Aw, market strategist at IG in Singapore. The 2.5 percent security due in August 2046 fell 2.218, or 22.18 euros per 1,000-euro ($1,127) face amount, to 152.962. Brent crude, used to price worldwide oils, lost 67 cents to $49.32 in London. News stories displayed here appear in our category for Business and are licensed via a specific agreement between LongIsland.com and The Associated Press, the world’s oldest and largest news organization. For the protection of AP and its licensors, content may not be copied, altered or redistributed in any form. Doing so may result in civil and/or criminal penalties.
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The group, which employs 35,000 staff in more than 970 pubs, said like-for-like sales growth since the end of its financial year had picked up to 4.1%, but added “it remains to be seen whether this will continue over the remainder of the year”.
