ECB And Brexit To Take Center Stage

This week, the European Central Bank (ECB) will take the center stage in the markets. On Wednesday, the bank will conclude its two-day meeting and release a statement on the monetary policy. This will come at a time when the EU economy is showing signs of increased weakness. This weakness has come from countries of all sizes including the mighty Germany and the small Malta. In the past meeting, the ECB said that it is likely to hike interest rates in December this year. This was further from the previous prediction of a summer rate hike. This comes at a time when analysts and investors are worried that the central bank does not have enough tools to boost the economy in case of a slowdown. This is because of the prolonged low-interest rates.

This week, traders will continue to focus on the Federal Reserve. This is because of the announcements on the members who will be nominated by Donald Trump to the board. The president has said that he will nominate Stephen Moore, who is a prominent conservative who has openly supported the president’s call for low-interest rates. He is the visiting fellow for the Heritage Foundation. He is currently under scrutiny for his previous tax avoidance, and for failing to pay for his alimony. Trump has also announced that he will nominate Herman Cain to the board. Cain is a prominent Republican, a founder of a PAC that supports Donald Trump, and a former CEO of a pizza company.

In the United States, traders will focus on Pinterest, the image search company that is expected to go public soon. The company will begin its roadshow this week. In a roadshow, a company meets with investors and investment bankers in a bid to win funding and build confidence when it goes public. According to the Wall Street Journal, the company will set its IPO valuation to below where it was in the last funding. This will value the company at more than $12 billion. This IPO will come after that of Lyft and is expected to be followed by that of Uber, which is valued at more than $120 billion.

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