The 19-month strategic review concluded with the 25 members of the central bank’s governing council agreeing to tolerate some overshooting of its slightly higher 2 per cent inflation target, in an attempt to avoid being trapped in a low-rate, low-inflation world.

That unanimity is set to be tested at this week’s policy meeting. Christine Lagarde, ECB president, told the FT she did not expect unity on the new strategy to hold when the discussion turned to implementing the changes.

The central bank is widely expected to shift its guidance to indicate it will be more persistent in maintaining its monetary stimulus even after inflation rises above its target. But most ECB watchers say this will only formalise the position they assume it has had for several years.

“We doubt that these changes will be sufficient to elicit a large response from markets, as they already price a ‘lower for longer’ scenario,” said Oliver Rakau, economist at Oxford Economics.

Some of the conservative ECB council members, such as Jens Weidmann at the Bundesbank, have called for it to start winding down its bond-buying under the €1.85tn pandemic emergency purchase programme.

The central bank is not expected to make that decision until September when it issues updated economic forecasts. But Jacob Nell, an economist at Morgan Stanley, said the ECB could this week commit to a “smooth handover” from PEPP to a new policy framework. Martin Arnold

Will US earnings justify a rotation from growth to value stocks?

Wall Street’s earnings season began in earnest last week, with big US banks including JPMorgan Chase and Goldman Sachs reporting. This week, technology companies such as Intel, Netflix and Snapchat will reveal their results.

Expectations are high, with S&P 500-listed companies forecast to post year-on-year earnings per share growth of almost 63 per cent for the three months to the end of June, according to FactSet data — the largest increase since the wake of the 2008-09 financial crisis.

The results should help to clarify whether a tilt among investors away from high-growth sectors such as technology towards more economically sensitive ones such as energy and banking is backed by corporate performance.

Growth stocks in sectors such as technology have proved resilient, as the shift to working from home has endured despite the easing of lockdown restrictions. Rising inflation has also not been as much of a drag on tech as expected.

Some analysts say a full-scale shift from growth to value stocks remains premature. “There’s not a style rotation,” said Marija Veitmane, strategist at State Street Capital. “Part of value will do well and part of value won’t.”

Veitmane said technology groups have remained a favoured area owing to their fast and stable earnings growth. Technology shares also attracted buyers in recent weeks after minutes of the Federal Reserve’s latest meeting showed policymakers viewed the path of the recovery from coronavirus as “uncertain”. Siddharth Venkataramakrishnan

Will the world’s least-loved major commodity keep rising?

Thermal coal has hit its highest level in a decade, with benchmark prices up more than 70 per cent this year — outpacing oil, copper and other raw materials that have benefited from the vaccine-driven global economic recovery.

The world’s least-loved major commodity and its rally come as governments seek to reduce carbon emissions.

High-quality Australian thermal coal, the benchmark for the huge Asian market, reached $140 a tonne last week. Its South African equivalent is also trading at its highest level since 2011, according to commodity price provider Argus.

Supply disruptions and a drought in southern China, which knocked out hydroelectric dams, have been key factors in the commodity’s resurgence, according to Dmitry Popov, senior coal analyst at consultancy CRU.

Output from Indonesia, China’s biggest supplier, has been hampered by rainfall and labour restrictions, while rail constraints have affected exports from South Africa and Russia.

Analysts say a lack of investment in new mines, as banks and investors refuse to finance new projects, could help underpin prices for the foreseeable future even as demand declines because of the shift to cleaner, greener energy.

Growing coal-fired electricity appetite is also set to play a role in keeping prices high. Neil Hume