Friday, 27 October 2017

Markets rise as ECB to continue bond buying at reduced pace

Markets rose on Thursday.

The S&P 500 rose 0.1 percent, the STOXX Europe 600 jumped 1.1 percent and the Nikkei 225 rose 0.1 percent.

Stocks rose despite the ECB announcing a reduction in its monthly bond purchases.

“If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the asset purchase programme in terms of size and/or duration,” the ECB said in a statement after its monetary policy meeting.

“It turns out the dove camp is the clear winner here in the sense that they got the flexible or open-end of the QE program. That is why the euro is falling and equity markets are reacting so positively,” said Manuel Ortiz-Olave, FX market analyst at Monex Europe.

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