Investors await ECB meeting

The FTSE 100 is down 13 points in early trading, ahead of a crucial ECB meeting that should see an increase in stimulus efforts.

Markets are edging lower of an ECB meeting that is expected to deliver fresh stimulus for the struggling eurozone economy. The flow of liquidity over the past few months has been prompt and overwhelming, helping economies to weather the most perilous time in years, and for the time being it shows no sign of letting up. The actual market impact today of a fresh boost may be limited, given how widely-expected the move is, but it signals the continued willingness of central banks to act, and investors should be reassured by this. Additional support from the German and Australian governments has also provided reason for optimism, as politicians look to bolster their respective economies in the face of an uncertain future.

While the bounce has paused for breath, and eurozone stocks in particular look rather stretched after their recent run higher, equity markets remain impressively resilient in the face of a still-uncertain economic situation, where unemployment, consumer spending and industrial activity are all set to remain under pressure for the foreseeable future.