Euroland markets trading lower.

Monday, 18 April 2011 11:16

European markets are all off this morning, continual issues with debt and inflation are ongoing.

The suggestion that the ECB will soon raise its key rate again was echoed by other policy makers at the weekend meeting of the International Monetary Fund. Traders expect the ECB to raise its rate to 1.75 percent by the end of the year bases on forward contracts.

Higher euro borrowing costs at a time when the U.S. Federal Reserve is signaling no imminent move in its near-zero policy rate may support the euro after it fell last week on concern Europe’s sovereign debt crisis isn’t over. Obvioulsy this will not help nations such as Greece, Ireland and Portugal.

FTSE 100 5,968.79 off 27.22 (0.45%),  DAX 7,133.59 off 44.70 (0.62%), CAC 40 3,945.30 off 29.18 (0.73%), IBEX 35 10,442.40 off 116.20 (1.10%)

The Euro is currently trading at 1.43398.