Markets Await ECB Rate Decision, Expected to Hold – Europe Market Wraps

Global equities stalled as Tesla’s poor earnings dampened the recent advance, and investors waited to see if the European Central Bank would hint at when it could begin cutting interest rates.

Tesla shares fell 8% in US premarket trading after the electric vehicle maker missed earnings estimates and forecast slower growth this year. Contracts on the Nasdaq 100 traded flat, with traders anticipating Intel’s earnings later in the day.

The European Central Bank is expected to maintain its current rate of 4% later today; the ECB’s statement and news conference following the meeting will be analysed for hints about the future course. Although markets are pointing towards an April rate decrease, ECB officials appear to be planning to act in June.

In a similar vein, US data points to a 2% annualised rate of growth in the economy in the fourth quarter. A host of other indicators, such as weekly Jobless Claims, Inventories, and New Home Sales, will also be released, providing an overview of the state of the economy ahead of the next Federal Reserve meeting.