It’s a new week on the financial markets and it’s shaping up to be a busy one. Here are the main events to keep in mind when trading over the next couple of days.
The primary event affecting the financial markets this week will be the upcoming policy meeting of the European Central Bank. Amid lukewarm fundamental reports and a stagnant inflation rate, it is widely expected that the ECB will announce a plan to support the eurozone’s economy better. This will likely include a bond-buying stimulus system like the one that ended in 2018, as well as possibly an interest rate cut, though the rate is already at 0.00%.
The second most important development this week will be whatever goes on in the United Kingdom’s parliament. Two weeks ago it seemed almost certain that Prime Minister Boris Johnson would suspend Parliament and take the country out of the EU without a deal. However, now Parliament has effectively thwarted his plans. MPs are currently working on a way to force the PM to ask for a 3-month delay to Brexit before he is able to officially call a preliminary election.
Moreover, we expect a variety of reports from the UK, China, and the US, among others, over the course of the week.
