Most stock
indices rose after the European Central Bank’s interest rate cut. The German
stock index DAX briefly hits 10,000 for the first time.
The
European Central Bank cut its interest rate to 0.15% from 0.25%, but later
recovered its losses and traded higher. Analysts had expected a cut to 0.1%.
The ECB
also cut its marginal lending to 0.40% from 0.75% and reduced its deposit rate
to -0.10% from 0.0%. The European Central Bank is the world’s first major
central bank to use a negative rate. The deposit rate of -0.10% means that
commercial bank will be charged for holding their reserves. This measure should
spur commercial banks to ramp up lending.
Retail
sales in the Eurozone climbed 0.4% in April, exceeding expectations for a 0.1%
gain, after a 0.3% increase in March. On a yearly basis, retail sales in the
Eurozone rose 2.4% in April, exceeding expectations for a 1.3% increase, after
a 0.9% gain in March.
German
factory orders surged 3.1% in April, beating expectations for a 1.3% rise,
after a 2.8% decrease in March.
The Bank of
England kept its interest rate unchanged at record low 0.50%. The stimulus
program of the Bank of England remained unchanged at 375 billion pounds.
Investors had expected this decision. Investors expect the BoE will raise
interest rate in the first half of next year.
Indexes on
the close:
Name Price Change Change %
FTSE
100 6,813.49 -5.14 -0.08%
DAX 9,947.83 +21.16 +0.21%
CAC 40 4,548.73 +47.73 +1.06%
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.