A pledge by the US central bank, the Federal Reserve, for a massive spending spree of all types of US debt failed to put the brake on the global stock market sell-off, suggesting that investors are looking for huge government spending programmes and not just market-calming initiatives by central banks.
Shares in the big two Irish banks and a handful of property shares played catch-up with the global market slump to post falls, taking stock of the fading hopes of a deal that would avoid Britain crashing out of the EU at the end of October.
The head of the ECB Mario Draghi came close to confirming that some interest rates are heading lower in September -- and a senior analyst says this will provide Finance Minister Paschal Donohoe with a ‘Draghi bounty’ and more ‘fiscal room’ in his autumn budget.
Hopes that UK Prime Minister Theresa May could clinch a last-minute deal with the EU boosted sterling against the euro, as markets continued to predict that any Brexit involving Britain crashing out at the end of the month was most unlikely.
Analysts have hailed ECB head Mario Draghi as his handling of a cutback in euro crisis measures helped relieve European exporters, boosted European stock- markets, pushed down Irish bond yields, while reassuring there would be no early hike in interest rates.