Afternoon Market Update – 08/12/2016 – by Jaz Singh

All eyes are on the ECB today as we await the central bank’s plans regarding its stimulus programme. With markets pricing in an extension of the current QE package this week, some are now concerned that Draghi may not provide the extent of stimulus expected. This fear has most affected fixed income markets, with European bonds falling across the board. The Euro has rallied further during today’s trade targeting the 1.08 level versus the dollar. It seems that markets are preparing themselves for a disappointing ECB strategy as per December last year. The DAX is nestled comfortably above the 11000 level but remains flat for the day, following a 4 day winning streak across European bourses. Elsewhere we see the greenback retreating, with the dollar index finding support at the 100.00 handle. US equities however continue to rally with the major US stock futures pointing to gains at the cash open. WTI trades near the $50 handle as focus shifts to whether OPEC can persuade non-members to partake in output reductions. Other than the ECB this afternoon we have jobless claims data from the US as well as housing data from Canada.