Yesterday morning, the ECB began their corporate bond buying program. The European Central Bank bought the debt of Siemens AG, Renault SA and Telefonica amongst other large companies. Borrowing costs in the Eurozone have already fallen to unprecedented levels and if the economy continues to struggle, we could see ECB President Draghi introduce further stimulus measures.
The economic docket was relatively light yesterday and the only notable piece of data came from the UK. UK Manufacturing and Industrial Production both released their highest figures since 2012 with Manufacturing registering at 2.3% and Industrial Production registering a 2% increase month on month.
Further insight into China’s economy will be provided, as they release their yearly inflation figure, which is expected to remain at 2.3%. The biggest event of the day is scheduled at 08:00 BST when Mario Draghi, President of the ECB, speaks in Brussels at the Economic Forum. Markets will look to see if Draghi gives any clues for further stimulus plans, or comments on how the concerns of Brexit are affecting the European Central Bank. The US release the weekly unemployment claims which is expected to increase slightly to 270k.