The US election nominations took a surprising turn yesterday. Democratic favourite Hilary Clinton was expected to sail to an easy victory in Michigan, however she suffered a stunning loss to rival Bernie Sanders. A loss that has the potential to further slow her progress to the Democratic nomination. Although, the Sanders win won’t go too far toward bridging Clinton’s overall pledged-delegate lead, it does offer some warning signs to Clinton’s campaign for the upcoming Midwestern states.
The economic calendar was relatively light yesterday, the Manufacturing Production data was released from the UK and Crude Oil inventories from the US to entertain markets. Firstly, Manufacturing Production from the UK registered a better than expected reading of 0.7%, its best figure this year as manufacturing output bounces back from last month’s decline. Across the pond, the US released their Crude Oil Inventories, forecast to depreciate to 3m. The reading posted a better than expected 3.8m.
The main event of the week will be in focus today when the ECB meeting on rate decision takes place, followed by the press conference. The rate is not expected to change from 0.05, but with the head of the ECB Mario Draghi already stating previously that the committee are ready to use further stimulus to help tackle inflation pressures and growth, the markets are awaiting to see in what form these extra stimulus measures will be if any implemented. No doubt this is the biggest event risk of the week as the current inflation for the Eurozone is in deflationary territory and most expect action to be taken now.