ECB Meeting Looms Large Over Markets, Brent Crude Heads Towards $40 a Barrel

There was to be no major change in sentiment after the US open this Monday, the global indices chugging along with the same sour tone that has been present since the morning session.

Falling around 30 points at the open only to claw back its losses as the afternoon continued, the Dow Jones is now flitting around the 17000 mark it struck last Friday, apparently (and understandably) less bothered by the jitter-causing wait for Thursday’s ECB meeting than its European peers.

It was a typically sleepy post-non-farm Monday data-wise, the US offering up nothing of real note as the day continues; there are, however, speeches from FOMC member Lael Brainard and vice-chair Stanley Fischer early this evening, speeches that could give some insight into the central bank’s mind-set ahead of next week’s meeting.

Shrinking its losses to around 30 points the FTSE benefited from Brent Crude’s sustained recovery this Monday.

Teasing (if not quite reaching) $40 per barrel for the first time since last December the black stuff’s climb allowed majority of the UK index’s commodity stocks to reverse their earlier reversal, the miners especially returning to the 4 month highs they had abandoned after the bell this morning.

Whilst the FTSE was aided by its commodities, the Eurozone indices remained more resolute in their losses this Monday, the DAX and CAC never really straying from their 0.9% falls.

It appears that, with worrisome words coming out of the Eurogroup meetings in regards to the semi-dormant, but unresolved, issue of Greece, the similarly unsolved refugee crisis and, most relevantly for the markets, the question over what Mario Draghi means when he says he will ‘do whatever it takes’, investors are unwilling to take on too much risk ahead of Thursday’s ECB meeting.