European Central Bank

The European Central Bank (ECB) has cut interest rates again as inflation in the Eurozone slows and economic growth falters. However, no clear guidance was given on future actions, even though investors expect continued easing in the coming months. The deposit rate was lowered by 25 basis points to 3.5%, a move anticipated after a similar cut in June.

Greek Prime Minister Kyriakos Mitsotakis has urged the European Commission to address distortions and fragmentation in the European energy market, which led to significant discrepancies in wholesale electricity prices between Southeastern Europe and other EU countries during the summer, according to the Financial Times.

European shares jumped on Thursday after the European Central Bank (ECB) cut interest rates again as inflation hovers within striking distance of its 2% target and the domestic economy is skirting a recession.

The pan-European STOXX 600 index was up 0.8% at 511.98 points, hitting one-week highs, with all regional bourses ending the session with healthy gains.

The world’s advanced economies may have a new reason to hope for a firmer growth base next year if some of the more bearish forecasts for oil come true.

The Greek stock market, which shifted its tone following the ECB’s interest rate announcement, once again fell short of expectations. Although it initially aligned with global market trends, it eventually diverged, trailing behind the positive sentiment seen elsewhere.

The domestic market is reacting, after the 4-day downward streak that preceded it, which was a result of the lack of positive catalysts. In contrast to previous days, Athens is tuning in today (12/9) to the rally in international stock markets. The resurgence of buying interest is driven by Wall Street’s tech rally, as well as the boost provided to euro markets by the ECB’s monetary easing.

The benchmark of the Greek stock market slumped on Wednesday to a new month-low, as it has completed four consecutive sessions of decline and traders showed no intention of containing its losses - which may point to more losses.

The European Central Bank is set to cut interest rates again by 25 basis points on Thursday, just days before the US Federal Reserve (Fed) opens its own monetary policy easing cycle.

The inability of buyers to react showed today’s (10/9) third consecutive session of losses on the Greek stock market. Although initially the General Index had recovered above 1,440 points, sellers then took the reins again and led the market below 1,430 points.

For no obvious reason, except for the lack of buying interest, the Athens bourse started the week on particularly low turnover and losses for the majority of stocks. The market may be waiting for corporate developments before some cash flow is restored, a possibility being the upcoming Moody's rating verdict on Greece this Friday, or the European Central Bank meeting on Thursday.