Draghi speaks

Shares rose today following gains in Asia, while the Euro held steady on speculation the European Central Bank would ease monetary policy later in the day. The economy in the Euro zone is still fragile and the ECB was expected to keep interest rates on hold.

Emerging stocks and currencies were broadly higher as diplomatic talks to moderate the crises in Ukraine were set to continue. The European leaders are having a meeting in Brussels today. They will discuss Russia and warn them but not sanction them, diplomats said.

Fears of military confrontation is reduced, and the attention now has shifted to what ECB will do now. Investors are waiting for Draghi today. ECB may hesitate to buy government bonds, unlike other major central banks like U.S Fed and BoJ.

The problem in Europe is high unemployment rate and slow growth. Will all this end up in deflation? The Euro is now traded at $1,3720 and it is expected to hear dovish talking from Draghi later today.

When the risk in Ukraine is reduced, the dollar strengthened against the safe-haven yen. It went up half a percent at 102,7 yen. The dollar index rose, which measures the greenback against a currency basket.

Reports today:

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