Euro bulls unconvinced with ECB's anti-crisis promise [Video]
|Ugly economic data was responsible for a decent plunge in US equities on Tuesday.
The S&P 500 slid 2% yesterday and Nasdaq took another 3% hit following a soft CB consumer confidence index and sharp fall in Richmond manufacturing index, hinting at softer economic activity as a result of tighter Federal Reserve (Fed) policy. European stocks failed to build on the early gains.
Volatility remains high, and oil prices sustained. The latest API data showed an almost 4-million-barrel decline in US oil inventories, versus 110’000-barrel fall predicted by analysts. An eventual cap on Russian oil may worsen the energy crisis, and OPEC will unlikely relieve stress today. On the economic agenda, plenty of central bankers are due to speak today at a European Central Bank (ECB) event, including the Fed Chair Jerome Powell and the Bank of England (BoE) Governor Andrew Bailey. But all eyes are on Christine Lagarde, and her magical anti-fragmentation tool, which will solve the Euro zone debt problem. But euro bulls are increasingly less convinced!
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