He added that European Central Bank policies have helped to lessen the impact of the British vote on the eurozone.
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“Equities have found renewed bullish gusto.as investors contemplate upcoming central bank action”, said Mike van Dulken, head of research at traders Accendo Markets.
Market focus will be on Draghi’s first press conference after finding out about the Brexit vote.
“Sufficient data may not be available by the next meeting, pointing towards longer delay”, he tweeted. The ECB has made an initial forecast of a 0.3-0.5 percentage point drop in eurozone GDP as a result of Brexit, but Draghi noted that those forecasts should be taken with a “grain of caution”. USDJPY has rallied 700 pips in 9 trading days to trade above 107, and seems there’s more upside potential if BoJ chose to support from the monetary side when they meet in July 28. Britain’s FTSE 100 fell 0.3 percent to 6,708.27. The implementation of structural reforms are meant to reduce structural unemployment and boost potential output growth in the euro area, according to President Draghi.
Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers, said: “There are renewed signs of weakening growth dynamics in the eurozone, and more importantly, uncertainty created by Brexit suggests another negative shock to growth is in the pipeline”. EasyJet also reported a drop in revenue per seat and total revenue for the third quarter amid hard trading that was hit by the terror attack in Brussels and the EgyptAir tragedy.
The absence of annual profits guidance “is not reassuring and highlights the wide range of potential outcomes, even at this late stage of the year”, said Gerald Khoo, analyst at broker Liberum.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.1 percent, nudging back toward last week’s nine-month highs, after reassuring earnings overnight helped send both the Dow Jones industrial average .DJI and the S&P 500 .SPX to record highs.
The yen had hit a six-week low on reports Tokyo was considering a package of at least 20 trillion yen to boost the economy.
United Kingdom retail sales rose less than expected in June compared to the same month a year ago as unseasonably cold weather hurt clothing stores, official data showed on Thursday.
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USA stocks retreated at the opening bell on Thursday following a streak of record-setting sessions.
