ECB Announces Loosening Of Monetary Policy

  • Sep 12, 2019 BST
  • Team Kalkine
ECB Announces Loosening Of Monetary Policy

Global Markets*: Stocks at the Wall Street were zooming up amid US President delays China tariffs, with the Down Jones Industrial Average Index leapt up by 140.20 points or 0.52% to 27,277.24, the S&P 500 index shot up  17.67 points or 0.59% to 3,018.58 and the technology benchmark index Nasdaq Composite Index surged 51.45 points or 0.63% to 8,221.13, respectively.

Global News: After Beijing and Washington both made concessions on planned tariffs, in a further sign of potential de-escalation in the prolonged trade dispute between the US and China, Beijing said on Thursday that inquiries for US agricultural goods purchased by Chinese companies have risen. Underlying consumer prices increased firmly in August, rising by 2.4% year-on-year and 0.3% over the month, while the consumer price index gained 0.1% in August and 1.7% year-on-year. Moreover, in a sign that the labour market remains healthy, weekly jobless claims fall 15,000 to 204,000, declining to a five-month low last week. As the European Central Bank said it would restart asset purchases and cut interest rates to a record low, Treasury yields fell across the board on Thursday and stocks opened higher.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 6.64 points or 0.09% higher at 7,344.67, the FTSE 250 index snapped 19.59 points or 0.10% lower at 19,962.57, and the FTSE All-Share Index ended 2.77 points or 0.07% higher at 4,035.21 respectively. Another European equity benchmark index STOXX 600 ended at 390.48, up by 0.77 points or 0.20 per cent.

European News: In an effort to support the ailing eurozone economy, the European Central Bank cut interest rates to a record low of -0.5%, going deeper into negative territory, and promised an indefinite supply of fresh asset purchases, with bond purchases at a rate of 20 billion euros a month to be restarted from 1 November. While doubts over the efficacy of the measures persist, the move would increase pressure over central banks of other developed countries. Even as the market gave cold reception to the surprise $39 billion takeover proposal by the Hong Kong Stock Exchange to acquire LSE, its board is slated to meet in coming days to decide on the matter.

London Stock Exchange (LSE)

Top Performers*: CAPITAL & REGIONAL PLC (CAL), FOXTONS GROUP PLC (FOXT) and SEVERFIELD PLC (SFR) are top performers of the day and up by 10.42%, 6.12% and 4.31% respectively.

Worst Performers*: RICARDO PLC (RCDO), OXFORD BIOMEDICA PLC (OXB) and MCCOLL'S RETAIL GROUP PLC (MCLS) are the top three laggards of the day and down by 7.41%, 6.49% and 6.17% respectively.

FTSE 100 Index

FTSE 100 Index Chart: 5-days Price Performance (as on September-12-2019), before the market closed. (Source: Thomson Reuters)

Performers*: MORRISON(WM.) SUPERMARKETS PLC (MRW), ASSOCIATED BRITISH FOODS PLC (ABF) and ANGLO AMERICAN PLC (AAL) are the top three gainers in today’s session and up by 3.92%, 2.63% and 2.60% respectively.

Laggards*: NMC HEALTH PLC (NMC), ITV PLC (ITV), and 3I GROUP PLC (III) are top laggards at the FTSE 100 index and down by 4.46%, 2.95% and 2.49% respectively.


Top Performing Sectors*: Basic Materials (+1.40%), Technology (+0.66%), and Telecommunications Services (+0.51%).

Worst Performing Sectors*: Energy (-1.05%), Consumer Cyclicals (-0.93%), and Financials (-0.28%).

FX Rates (at the time of writing): GBP/USD and EUR/GBP were trading at 1.2361 and 0.8959, respectively.

10-Year Bond Yields (at the time of writing): US 10Y Treasury and UK 10Y Bond yields were exchanging at 1.780% and 0.668% respectively. 

*At the time of writing

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

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