Major global stock market indices continue to tread downward following the words of central bank officials’ words from the past week. The DAX30 bottomed at 10309.00, losing nearly -4.50% of its strength as European Central Bank Governor Mario Draghi appeared to be losing his inclination to add more stimulus across the Euro bloc. The central bank governor opted to leave monetary policy untouched on September 8th while reiterating the fact that fiscal policy needs to escalate its efforts. Accommodative global low interest rates and an ordinance in quantitative easing should by now have aided in the build-up of the general economy. The FTSE100 also noted a -3.47% decline, adding to the same basket, as Governor Carney fears the UK referendum outcome has not yet been felt.
On the other hand, Federal Reserve officials seem to be diverging from most central banks, stating that a rate hike is still on the table for the US economy and expressing the risks of low rates. On the heels of the statements the S&P500 which also declined of a little over -4.20%. More rumblings can be witnessed on indices as officials prepare to speak. The Fed’s most dovish official, Fed Governor Brainard, prepares to give a speech while at the same time Atlanta Fed President Lockhart may add to more stock washout.
Stock Washout in Major Indices
Market Trends - 12/09/2016