European markets are expected to open on an optimistic note on Thursday ahead of the European Central Bank's interest rate decision. The rate cut by Bank of Canada, as well as the lower-than-expected private payrolls data from the U.S. supported sentiment. Anxiety concerning the crucial non-farm payrolls data from the U.S. Bureau of Labor Statistics on Friday however lingered.
The ECB in its meeting on Thursday is widely expected to reduce the Deposit Facility Rate from 4 percent to 3.75 percent, Interest Rate on the main refinancing operations from 4.5 percent to 4.25 percent and the Marginal lending rate from 4.75 percent to 4.5 percent. Though the 25-basis points rate cut is factored in by the markets, considerable uncertainty remains on the rate cuts beyond June.
For comments and feedback: editorial@rttnews.com