NEW YORK, NY -- (Marketwire) -- 03/11/13 -- The Euro strengthened Thursday after the European Central Bank decided to leave its key rate unchanged at a record low 0.75 percent. While European officials had discussed a potential rate cut, the "prevailing consensus was to leave the rates unchanged," ECB President Mario Draghi said. Research Driven Investing examines investing opportunities in the Foreign Banking Industry and provides equity research on Deutsche Bank AG (NYSE: DB) and HSBC Holdings plc (NYSE: HBC).
The ECB's decision to leave its key interest rate at its record low of 0.75 percent came on the same day the Bank of England announced it would leave its interest rate at 0.5 percent. Mario Draghi at a recent press conference stated that the Eurozone's economy would begin to stabilize in the second half of the year, and could see growth return in 2014. The ECB has predicted that the Eurozone economy will shrink 0.5 percent in 2013, an increase from their previous forecast of 0.3 percent, while estimated growth for 2014 is expected to be 1 percent, according to data from Bloomberg.
"The key take aways from the [ECB] meeting are that all options remain open and that the ECB hasn't closed the door for further easing if financial conditions tighten," said James Ashley, senior economist at RBC Capital Markets.
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Deutsche Bank AG is a Germany-based global investment bank. The company diversifies its activities into three group divisions: Corporate & Investment Bank; Private Clients and Asset Management, and Corporate Investments. Shares of Deutsche Bank have rallied over 3 percent in the past week.
HSBC Holdings plc is a banking and financial services organization. It serves around 89 million customers through four global businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. The company reported profit before tax for 2012 was $20.6 billion, a decrease of 6 percent when compared to a year ago.
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