Markets poised for European stimulus boost – London Report
All eyes are on Europe this week as European Central Bank (ECB) president Mario Draghi will reveal more details on planned quantitative easing to stoke markets on Thursday.
Draghi previously said he and his policymakers would “do what we must” in their efforts to boost inflation to the target of less than two per cent “as quickly as possible”.
The ECB has queued up aggressive action over the past few months to such an extent that it is widely agreed that there will be an extension on quantitative easing and bond buying from the bank.
UK PMI figures, out on Thursday, will also be high up on the agenda.
Before that though, the International Monetary Fund board is expected to promote China’s yuan to reserve-currency status this morning.
The only currencies that already have that honour are the US dollar, the euro, the pound and the Japanese yen.
Tomorrow, the Bank of England is set to publish the results of its latest round of stress tests along with its Financial Stability Report.
The other big event this week that will be generating headlines is the climate change talks going on in Paris.
World leaders are there from to begin a two-week effort to come to an agreement on climate change policy.
Some big companies are keen to see more predictability and consistency on the issue from world powers, including more certainty about the future price of carbon-based fuel.
Following a rather lackluster performance from the bargain-hunting crowds on the high street on Friday, today’s Cyber Monday is expected to further boost digital’s increased spend over physical stores.
Some analysts have suggested the UK could be on course to top £3bn in sales over the weekend,
We’re out of earnings season now, and equity news is relatively light.
This morning, however, full-year figures from Aberdeen Asset Management will be required reading, and analysts will be interested to what extent emerging market slowdown will have impacted the company.
Also coming are numbers from spread betting company IG Group this morning, and on Wednesday interims from Greene King and final results for Brewin Dolphin.