We present to you an overview of what was relevant from the ECB’s September policy meeting on September 3 and Mario Draghi’s press conference.
China went through many important events recently—like the equity bubble burst, the cut in interest rates, the stock sell-off, and currency devaluation through the first half of 2015.
The iShares MSCI United Kingdom ETF (EWU) was down 3.75% on September 1. The ETF fell for the second consecutive day.
On August 20, the bottom four stocks of the iShares MSCI United Kingdom ETF (EWU) were ICAP (IAP), Prudential Financial (PRU), Hargreaves Lansdown (HRGLF), and Carnival (CUK).
The iShares MSCI United Kingdom ETF (EWU) fell 1.45% as of August 20. Randgold Resources (GOLD) was the top-performing stock of the day, recording a return of 5.79%.
The euro fought its way to end in positive territory against the US dollar on August 31, 2015, as inflation levels didn’t fall as anticipated in the month of August.
According to the August 31 release by the ISTAT, the EU’s harmonized inflation rate in Italy rose to an impressive 0.50% in August on a YoY (year-over-year) basis.
The inflation rate for the Eurozone, as gauged by the change in the consumer price index, was in negative territory in December 2014 and 1Q15.
The Swiss franc rose against the US dollar on August 28, 2015. Better-than-expected GDP (gross domestic product) figures lifted the sentiment for the franc.
After making significant moves on the upside, the euro battered down against the US dollar on August 25, 2015. There were sharp gains in the euro-dollar pair.
The Flash Germany Composite Output Index for August rose to 54.0 from 53.7 in July. Service sector activity stood strong at 53.6 index points in August.
Both the manufacturing and service sector contributed positively to business activity growth in Germany in August.
Countries in the EMEA (Europe, the Middle East, and Africa) region have shown mixed responses to the devaluation of the yuan.
The G10 currencies were impacted positively as the US dollar index dropped in value in the two weeks ending August 21, 2015.
The Chinese yuan devaluation has been the major driver of the massive volatility in the foreign exchange markets over the last two weeks.
The United Kingdom’s CPI rose to 0.1% in July. But it couldn’t boost the iShares MSCI United Kingdom ETF (EWU) on August 19. The EWU will take some time to revive.
The iShares MSCI United Kingdom ETF (EWU) yielded -1.59% as of August 19. The top-performing stock for the day was the Admiral Group (ADM) at 3.82%.
Despite the volatile environment in several sectors on August 18th, the UK’s inflation rate announcement should impact the stock market and its economy.
Results on August 18 were gloomy for all sectors except Energy and Healthcare. But returns from these sectors look volatile as well.
The Monetary Policy Committee of the Bank of England should take comfort from rising inflation. It is believed that the members will not be rushed into hiking the rates, as the MPC voted 8–1 in favor of keeping the rates constant.