Low inflation in Euro zone

The yen is weaker today, but Japan`s Nikkei is trading up at its three-week high. A nice day, but it is the worst quarter performance for Nikkei in about two years. It’s also a «window dressing» as the books close for the fiscal year-end today. Nikkei rose to 14,827,83, up 0,9%.

Janet Yellen

The inflation in Europe is at its lowest since November 2009. The question now is what ECB (European Central Bank) will do to stop this threat of deflation in the currency bloc. It`s far from the deflation we saw in Japan in early 90`s, but it is a clear sign of a weak economy.

ECB will probably cut the interest rate on the meeting on Thursday, but because of this year`s late Easter, they will probably wait until the next meeting which is in June this year. It`s still a case for easing.

That`s why we see the European markets trading up today to a three-week high. There are growing speculation that China will start to stimulate its economy too. This is music in investors ears, and not only European shares are up today.

It seems like the U.S markets will open up today too. That`s a nice, green and positive territory. Right before a speech by Federal Reserve Chair Janet Yellen. She is scheduled to speak in Chicago at 09:55 a.m EST.

Investors will listen to what she have to say about interest rates. Last time Yellen spoke about the possibility of an earlier-than-anticipated increase in rates, the equities dropped. This is the last day in march, and the S&P 500 is nearly flat this month. Up 0,5% for the quarter.

Reports today:

09:45 a.m EST  Chicago PMI
09:55 a.m EST  Fed Chair Janet Yellen speaks

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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