ECB rocks global markets by cutting interest rates – NBK

KUWAIT, March 13 (KUNA) — National Bank of Kuwait said on Sunday that the European Central Bank’s (ECB) decision to cut interest rates and increase the value of the monthly asset contributed to rocking global markets.
NBK reported that the ECB announced this week that it was cutting the main refinancing rate, the marginal lending rate, the deposit facility rate, raising monthly asset purchases, while also expanding the list of assets eligible for the program to include non-bank investment grade corporate bonds, and finally introducing four new four-year long term refinancing operations. The equity markets rallied across the board and the Euro fell. However, the excitement did not last long and faded quickly after Mr. Draghi suggested that “the ECB did not see much scope for further rate cuts” it added.
Statement pointed out Euro move seemed to cause some of the greatest debate. the currency initially weakened over 1.5 percent in minutes after it was posted in the news.
The Sterling Pound remains in a no man’s land while the UK continues to face weak economic data and stream of UK political noises.
The Oil markets continued their strong surge of late this week. Crude and Brent rallied over 12 percent with the former closing the week at USD 39 and the latter at the USD 40 level for first time since December.
Sentiment was boosted after the news of another drop in the number of US operating rigs last month while expectations continue to build ahead of a potential meeting between OPEC and non-OPEC producers later this month.
The global markets overall expects to keep interest rates unchanged this week with the continuation of the economic situation in America. (end) fnk.nfa.hs