Market News & Analysis
Failed Renault merger and ECB drive markets
Fiona Cincotta June 6, 2019 11:02 AM
Like the Federal Reserve earlier this week, Europe’s central bank is expected to keep a dovish stance and rates unchanged with most of the activity focusing on some form of economic support for the region. This is likely to centre on the terms for cheap funding to banks that will allow Eurozone banks to support businesses and consumers with cheap loans.
In London retail-facing sectors including home improvement and supermarket chains were on the declining end of the FTSE with home builder Taylor Wimpey dropping a hefty 6% after several days of strong trading. The reluctance of France’s government to OK the mega merger between Fiat-Chrysler Renault and Nissan caused significant drops in Fiat, Renault and Nissan shares alike.
The common currency is marginally higher against the pound and the dollar having dropped in afternoon trade Wednesday but the ECB monthly session could put the currency under further pressure, particularly if it stresses the downside risks to the Eurozone.
Brent crude higher
For Brent the $60 level has managed to hold well at the current resistance level despite several attempts this week to move lower. Instead crude seems to have turned the corner and this morning it is trading 0.79% higher.
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