Thursday, June 5, 2014

Economic Journal - Thursday, 6/5/2014



(As of 7:20 am PST)
US stocks opened mildly higher today and are slowly falling back to the unchanged line.  News out of Europe grabbed headlines this morning as the European Central Bank announced a package of stimulus measures aimed at spurring growth in the sluggish Euro-zone economy.  The most drastic move was the ECB’s decision to cut its key lending rate to 0.15% from 0.25% and its deposit rate to -0.1% from 0%.  Implementing a negative deposit rate, effectively will charge banks for leaving excess reserves at the ECB.  ECB President Mario Draghi announced at a news conference this morning that other measures intended to spur growth and bank lending will be put into effect shortly, including plans for future quantitative easing.  Today’s announcement lifted European stocks with most of the major equity benchmarks higher.  In the US, a report on jobless claims showed claims rose slightly last week but still remain near a post-recession low.  Investors are gearing up for tomorrow’s nonfarm payrolls report hoping for improving data despite yesterday’s disappointing ADP jobs report.  It looks like another quiet day today for US markets.

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