ECB launches trillion euro QE

The European Central Bank announced its quantitative easing programme on Thursday. Bloomberg reports:

Mario Draghi led the European Central Bank into a new era, committing to a quantitative easing program worth at least 1.1 trillion euros ($1.3 trillion) to counter the threat of a deflationary spiral.

The ECB president shrugged off determined opposition led by German officials with a pledge to buy 60 billion euros every month through September next year in a once-and-for-all push to put more cash into circulation and revive inflation. To assuage critics, the region’s 19 national central banks will make 80 percent of the purchases and take on any risk they carry.

Markets reacted positively to the announcement. The S&P 500 rose 1.5 percent while the STOXX Europe 600 jumped 1.7 percent.

The euro declined 2.1 percent to $1.1363 as Italy’s 10-year yield fell 14 basis points to 1.55 percent, Spain's 10-year yield declined 13 basis points to 1.41 percent and Germany's bund yield fell eight basis points to 0.45 percent.