London — Stock markets snapped a three-day losing streak on Tuesday and oil was on its longest run of gains in nine months as moves to ease major economies out of their coronavirus lockdowns lifted sentiment.
The euro and the region’s government debt fell, too, though the court also said the ECB’s measures didn’t amount to monetary financing — where a central bank bankrolls the government — something banned in Germany.“In practice, this should not restrict the ECB too much,” said Holger Schmiedling, chief economist at Berenberg. “However, the Karlsruhe [German court] has emphasised that there are limits to bond purchases. This could make it more difficult for the ECB to expand PEPP.
That meant the dollar index pushed higher for a second consecutive day, though the big petrocurrencies, such as Canada’s dollar, Norway’s krone and Russia’s rouble, were all stronger or holding steady.