Dollar and stocks slip as Trump hits China with tariffs

ECB calls halt to quantitative easing, despite 'soft' euro

The European Central Bank just called time on its €2.5 trillion stimulus programme

The European Central Bank (ECB) has confirmed it will end a huge program to stimulate the Euro-zone economy in December.

The USD/JPY pair are trading at 110.48 Yen, down 0.17%; the pair earlier hit a peak of 110.690 Yen while the low is at 110.457 Yen.

The biggest complication could be a murky economic outlook, muddied by the developing trade war, a populist challenge from Italy's new government and softening export demand.

Mr Draghi made the announcement at a news conference following the bank's meeting to discuss eurozone monetary policy.

Other analysts said they thought that now the ECB's closely-watched meeting was out of the way currency markets could embrace more risk.

In early trading, the dollar rose above ¥110.60, helped by a tumble of the euro against the greenback after the European Central Bank decided Thursday to keep policy interest rates unchanged at least until the summer of 2019, traders said.

The United States' dollar index is expected to pare some gains and pull back amid the prospect of the European Central Bank's (ECB) unveiling of a quantitative easing (QE) exit plan by July and a flattened United Treasuries yield, according to the latest research report from Scotiabank.

By that time the U.S. Federal Reserve is expected to have raised rates at least five times, making the dollar much more attractive than the single currency.

More news: President Trump raises eyebrows with ‘joke’ comparing himself to Kim Jong Un

The ECB appeared to balance the phase-out of the stimulus programme with the pledge that the withdrawal of support for the economy would be gradual, and that interest rates could stay low for longer than the second quarter of next year if needed. USA officials say the tariff hike targets goods that might benefit from Chinese theft of technology or pressure on foreign companies to hand it over in exchange for market access.

"It was mainly in German where sensitivity towards trade issues is stronger than elsewhere", she said. The Dow Jones industrial average slipped 25.89, or 0.1 percent, to 25,175.31, and the Nasdaq composite rose 65.34, or 0.8 percent, to 7,761.04, a record.

The pan-European Stoxx 600 index ended 1.2 per cent higher as the Xetra Dax in Frankfurt jumped 1.7 per cent and the FTSE 100 in London gained 0.8 per cent.

ASIA'S DAY: Japan's Nikkei 225 sank 1 percent to 22,738.61 while South Korea's Kospi plunged 1.8 percent 2,423.48.

The central bank has undertaken an unprecedented programme of stimulus since the eurozone debt crisis.

Oil prices, meanwhile, fell sharply a week before a crunch meeting of OPEC and its allies who are to decide whether to extend a production cut agreement that has been in force since the end of 2016.

West Texas Intermediate crude oil futures were down 0.2 per cent at US$66.76 per barrel; Brent was down 0.6 per cent at US$75.49.

Latest News