European Central Bank holds interest rates steady to curb eurozone slowdown

Monday, 11 Mar, 2019

"Not only do we have a tepid euro area economy, but the USA and China are slowing".

A spokesperson for the European Commission said on Wednesday that no solution had been identified, and with the clock ticking down to the vote on 12 March, pound traders are becoming increasingly nervous that Mrs May's deal will be rejected by the House of Commons.

USA ambassador to China Terry Branstad told the Wall Street Journal that the two sides have yet to set a date for a summit as neither feels a deal is imminent.

Market participants are now waiting for the USA non-farm payroll report due later in the day for indications on the strength of the economy and how it would affect the Federal Reserve's monetary policy.

While the figures were skewed by the Lunar New Year break, they highlight ongoing troubles in the world's number-two economy, which is growing at its slowest pace for three decades.

Gold was range-bound on Friday as investors awaited the report for further cues on the economy, after the European Central Bank's (ECB) dovish policy stance spurred the dollar against the euro, while the metal was on track for a second straight weekly decline.

While stocks on Wall Street were lower, a late day rally helped curb losses and major indexes ended near session highs.

In early trade, London, Paris and Frankfurt each fell 0.7 percent.

A key market gauge of euro zone inflation expectations, the five-year five-year forward inflation swap, dropped to a nine-day low at 1.4618 percent.

The Bloomberg Dollar Spot Index decreased 0.3 percent, the first retreat in more than a week. The dollar weakened after seven days of gains and Treasuries were steady.

Other members discussed consequences of low for longer on banks.

Chinese stocks fell the most in almost five months after the nation's biggest brokerage issued a rare sell rating on the People's Insurance Company (Group) of China, likely signalling the government's desire to slow a market that has outperformed global rivals over the past two months.

United States 10-year Treasury yields hit a fresh two week low 2.627%.

The growth worries, along with surging US oil supply, dented oil prices.

Elsewhere, palladium slipped 0.7% to $1,516.87 US per ounce and was on track for its biggest weekly decline since the week ended November 23.