European Commission will block 5 countries from accessing the markets

Weekly Report - 29/07/2019

European Commission - limited access


A new decision from the European Commission appears to block five countries from accessing portions of the EU financial markets.  Now according to experts, this decision can negatively impact the U.K after its departure from the EU. The Commission decided the countries that are going to be affected by the decision are Australia, Argentina, Brazil, Singapore, and Canada according to the Financial Times. The European Union gives access to financial-market to non-EU lenders, credit rating agencies and more as long as they are in line with the EU rules. The United Kingdom will probably need to accept this regulatory system after its departure from the European trading bloc. According to the Financial Times, the EU has specified that England needs to rely on the equivalence requirements for accessing the single market after Brexit.

The Week that was

Last Thursday ECB President Mario Draghi did not support the monetary stimulus and interest rates. Following his talk, markets received the impression that the Federal Reserve will implement the same policy at its meeting this week.

The expectation now is that the Fed will lower rates by only a quarter percentage point, against a half-point, that many analysts anticipated. The ECB kept rates steady, however, Draghi said that it could decrease them in order to maintain stability.


Main Focus This Week

This week’s focus will be on the trade talks between China and US. The two countries will send their representatives to meet face to face. We anticipate that developments will influence the global financial markets. The FED also will be very interesting to watch this week as all expert's expectations are on a 25 basis point rate cut. A larger or smaller number than expected will probably create volatility in the markets.


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