Published: Sun, March 10, 2019
Business | By Eloise Houston

ECB needs to take its time to prepare new bank loans: Nowotny

ECB needs to take its time to prepare new bank loans: Nowotny

Investors who had been waiting for the jobs report to provide more clues on the state of the world's biggest economy were disappointed to learn US nonfarm payrolls increased by 20,000 last month, trailing estimates for a 180,000 increase.

The MSCI Asia Pacific Index dropped 1.4 percent as of 5:39 Hong Kong as China's trade slumped amid continued uncertainty from the trade war, with exports falling and imports weakening in February.

The February data out of Beijing came in well below expectations of a 4.8 percent drop and worsened the already brittle mood on world markets, after European Central Bank slashed growth forecasts and unveiled a new round of policy stimulus on Thursday.

As for other precious metals, silver for May delivery was up 30.9 cents, or 2.05 percent to close at 15.349 dollars per ounce.

The ECB decision sent European markets down-a trend which extended to the US-indicating market concerns over global growth.

"With the eurozone likely the next target for (Donald) Trump's trade-talk embrace, a slowing economy, a central bank very low on monetary bullets, an inability by members to mount a joint fiscal response and an impending is no surprise that the euro fell out of bed", said OANDA senior market analyst Jeffrey Halley. "But I think what the European Central Bank did was the correct reaction to that", he said. The China trade data should provide some volatility for all three with sellers emerging on a low print.

Thursday trading saw wider selloffs in Europe and the USA, with the gloomy global outlook pushing London's FTSE 100 down 0.53 percent and the Dow Jones falling 0.78 percent.

Elsewhere, the yen climbed with gold as investors sought havens.

Oil futures fell around $1 with USA crude at $55.75 a barrel, while Brent crude fell to $65.14.

The stock market rally since the start of the year followed a torrid 2018, but this latest flurry of investment is at odds with 2019's disappointing economic data.

Sydney sank one percent and Singapore 0.9 percent, with Seoul 1.3 percent off and Taipei 0.7 percent down.

EUR/USD Technical Analysis - Eyeing June 2017 Lows EUR/USD declined about 1%, suffering its worst day since the beginning of January.

The Japanese yen advanced 0.4 percent to 111.12 per dollar. The yield on the 10-year U.S. Treasury fell 4 basis points.

West Texas Intermediate crude dropped 1 percent to $56.11 a barrel.

In Italy output per hour fell 0.3 percent in the last quarter, its third consecutive fall.

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