The Markets in Europe are expected to open negative on Thursday after the Federal Reserve (Fed) Chairman Ben Bernanke said the bank’s monthly asset-purchase program is depending on the economic and financial progression, which are currently not strong enough. While in Spain, the auction for the benchmark bonds is expected to proceed.
The European Euro Stoxx 50 fell 0.32% lower at 2,671.50, while the German DAX futures were 0.26% down. The French CAC 40 futures were seen 0.36% lower at 3,858.50, while the UK FTSE futures declined 0.15% to 6,514.50.
Fed Chairman Ben Bernanke stated on Wednesday that the central bank are targeting cutting down its bond-buying program by the end of this year ,however he added the labor mark outlook could worsen if inflation goes below the banks 2% aim .
“I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course,” Bernanke said to the House Financial Services Committee.
He said even though the central bank may slowdown its bond-buying program earlier than expected, Fed Chairman Bernanke mentioned if the financial and economy condition don’t show any further improvement, the bank would push back any plans or development for cutting down the bond-buying program.
According to the Beige book report from the Fed meeting, the US economy is continuing to grow at a moderate pace in the past month since first week of June.
The euro zone current account is expected to show a sum of 21.3 billion for May on a seasonally adjusted basis, compared to previous record of 19.5 billion for the month of April.
While in Spain, the governments are expected to sell Treasury bonds maturing in 3, 5 and 10 years with coupons of 3:30%, 3.75% and 4.40%.
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