The FT's Michael Mackenzie highlights what to watch in markets on Thursday, as European share markets await the European Central Bank meeting and oil prices rally, with US WTI hovering just above $50 a barrel.
Filmed by Rod Fitzgerald. Produced by Filip Fortuna.
Here's what we're watching as the trading day gets going in London. Shares under pressure across the board as we await a meeting of the European Central Bank and look ahead to Friday's US employment report. We're not expecting policy surprises from the ECB. However, attention will focus on Mario Draghi's press conference. The elephant in the room for the ECB is how long can they keep buying bonds under QE when inflation is rising? That has some on watch for any hints of an early taper to QE. Then there's the question of what the ECB has planned if France's presidential election does deliver a shock result. All told, a tough afternoon possibly awaits Mr. Draghi.
As that unfolds, US WTI oil prices hovered just above $50 a barrel and the market is showing signs of breaking down, after being held up by last year's OPEC production deal. The other key level that we're watching is 2.6% on the 10-year treasury yield. No matter-- solid investor demand for a new 10-year sale on Wednesday. Yields are leading higher. Still, it will require a very strong US jobs report number tomorrow to take out that December peak of 2.63%.