Arab Today, arab today european stocks euro drop after ecb rate cut
Last Updated : GMT 21:25:08
Arab Today, arab today
Arab Today, arab today

European stocks, euro drop after ECB rate cut

Arab Today, arab today

Arab Today, arab today European stocks, euro drop after ECB rate cut

London - AFP

European stock markets posted mixed results on Thursday and the euro plummeted after the European Central Bank cut its main interest rate to a record low but did not announce new stimulus measures. The ECB cut its main refinancing rate to 0.75 percent in a widely anticipated move. In London, the Bank of England maintained its main rate at a record low of 0.50 percent and announced £50 billion ($78 billion, 62 billion euros) in additional stimulus to boost Britain\'s recession-hit economy. That brought the total amount of stimulus provided by the BoE so far to £375 billion. London\'s benchmark FTSE 100 ended a day of choppy trading with a slight gain of 0.14 percent at 5,692.63 points. Frankfurt\'s DAX 30 index turned lower meanwhile to post a loss of 0.45 percent at 6,535.56 points and in Paris the CAC 40 was down by 1.17 percent at 3,229.36. Madrid\'s Ibex 35 index plummeted by 2.99 percent to 6,954.20 points and in Milan the FTSE Mib fell by 2.03 percent to 14,089 points. The European single currency plunged to $1.2382 from $1.2527 late Thursday in New York. In midday stock trading in New York, the Dow Jones Industrial Average fell 0.19 percent to 12,918.88 points. The broader S&P 500-stock index lost 0.31 percent to 1,369.78, while the tech-rich Nasdaq was 0.11 percent higher at 2,979.34. In China, a second interest rate cut in less than a month surprised markets and analysts suggested that the world\'s second-biggest economy might be slowing more quickly than expected. With the anticipated ECB rate cut and BoE stimulus boost already priced in, markets had expected more from Frankfurt and London and were left wanting. \"Investors had built their hopes up too high ahead of today\'s central bank meetings and there are growing concerns that the apparent consensus reached at last week\'s EU summit is not as game-changing as first thought,\" noted GFT analyst David Morrison. Eurozone leaders agreed last week to allow emergency rescue funds to recapitalise commercial banks directly, taking pressure off the national accounts in their host countries. With the exception of also establishing a eurozone banking supervisory body and putting official creditors on a par with private investors, other measures were relatively minor or remained a question of interpretation. They notably included the conditions under which the funds could buy sovereign bonds to help out heavily-indebted countries like Greece and Italy. Investors had therefore looked to the ECB for some additional support. But ECB president Mario Draghi told a press conference after the rate cut was announced that he and eurozone central bank governors \"didn\'t discuss any other non-standard measures.\" He referred to previous massive cash injections into the banking system and a dormant ECB programme of buying sovereign bonds issued by heavily indebted countries. The interest rate, or yield on Italian 10-year bonds promptly jumped back above 6.0 percent, a level which is considered unsustainable over the long term. Spanish 10-year bonds traded at 6.773 percent and Spain\'s risk premium, which measures the extra yield demanded in comparison with safe-haven German 10-year bonds, remained high at 5.03 percentage points. And in Greece, the new Finance Minister Yannis Stournaras warned that the country\'s recovery plan was \"off-track\" and said Greece faced \"difficult years ahead\" as sensitive talks with EU-IMF creditors began. The European Union and International Monetary Fund have bailed Greece out twice with plans worth a total of 240 billion euros, plus a debt restructuring worth more than 100 billion. A bright note was provided by Ireland, which successfully borrowed money on capital markets on Thursday, a vital step in its fight to recover from a debt rescue and be the first eurozone failure to get back on its own feet. The amount raised of 500 million euros ($625 million) was small and the duration of the loans short at three months, but it was the first time for two years that Ireland had been able to borrow on the open market. In company news on Thursday, shares in Barclays Bank gained 1.33 percent to 168.2 pence even though Standard and Poor\'s cut the bank\'s long-term rating outlook and Moody\'s slashed its financial strength rating outlook after top executives resigned over an interest rate rigging scandal. Europe\'s biggest automaker Volkswagen jumped 5.08 percent to 134.50 euros as it prepared to wrap up its takeover of German luxury sports car group Porsche two years earlier than planned in order to unlock hitherto untapped economies of scale. Berenberg Bank chief economist Holger Schmieding summed up investor sentiment by asking: \"Are we heading for a stormy summer?\" \"If the situation were to get much worse, the ECB would do more than it has done today,\" he concluded.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today european stocks euro drop after ecb rate cut Arab Today, arab today european stocks euro drop after ecb rate cut

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today european stocks euro drop after ecb rate cut Arab Today, arab today european stocks euro drop after ecb rate cut

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel

GMT 21:37 2017 Wednesday ,17 May

US Stocks Close Mixed

GMT 04:58 2017 Wednesday ,17 May

Tadawul index gains 0.7%

GMT 06:20 2017 Tuesday ,16 May

Tadawul index climbs 0.6%

GMT 13:43 2017 Monday ,15 May

Oman share index declines marginally

GMT 04:37 2017 Thursday ,11 May

Tadawul index near flat on varying 1Q results
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday