Thursday, November 3, 2011

Impact ECB cuts interest rates on stock and commodities markets

Impact ECB cuts interest rates on stock and commodities markets : investors reacted to a European Central Bank interest rateThe European Central Bank has reacted to deepening fears of a long recession in the eurozone with a quarter point cut in interest rates to 1.25%.

The decision will cheer countries like Spain and Italy, which criticised the ECB for raising rates earlier in the year despite the Greek debt crisis and worries that growth was faltering. The ECB also cut the interest rate on its deposit facility to 0.5% and the rate on the marginal lending facility to 2%.

METALS-Copper pares losses after ECB interest rate cut
Copper cut losses on Thursday after the European Central Bank cut its main interest rate to tackle a worsening debt crisis affecting the eurozone, a move that will boost credit availability and brightens metals demand prospects.

Benchmark copper on the London Metal Exchange pared previous losses and trade at $7,865 in official rings, little changed from a $7,885 close on Wednesday, when it rose about 2 percent. The metal hit a session high of $7,930 per tonne shortly after the European Central Bank announced the interest rates cut.

PRECIOUS-Gold rises after ECB rate cut
Gold rose on Thursday in volatile markets that were lifted by a surprise interest rate cut by the European Central Bank, but a worsening euro zone debt crisis kept gains in check.

Gold has been rangebound in the past week or so, with the threat of a potentially disastrous Greek default burnishing gold's safe-haven appeal while fears of a liquidity crunch in case of a default have kept gains in check.

Oil up after surprise ECB rate cut
Oil prices pushed up toward $110 a barrel on Thursday after a surprise rate cut from the European Central Bank, but gains were capped by President Mario Draghi's comments that the eurozone was heading for a mild recession.

Brent crude for December was up 79 cents to $110.13 a barrel at 1444 GMT, after jumping to $110.69 immediately after the ECB's rates announcement.

TSX higher following ECB interest rate cut
The Toronto stock market was higher as traders doubt that Greece will end up holding a controversial referendum on its bailout plan.

The S&P/TSX composite index rose 73.32 points to 12,315.08 as markets also found lift from a move by the European Central Bank to boost growth in the struggling Eurozone. The ECB is cutting its key interest rate by 0.25 of a point to 1.25 per cent.

European Stocks Extend Gains on ECB Interest Rate Cut
European stocks advanced after the euro-area central bank unexpectedly cut the benchmark interest rate and reports that Greek Prime Minister George Papandreou may quit reduced the chance of a vote on the bailout package.

Swiss Re Ltd. and Man Group Plc each gained more than 5 percent after reporting better-than-expected earnings. Cable & Wireless Communications Plc jumped 9.6 percent after saying restructuring is ahead of schedule.

The benchmark Stoxx Europe 600 Index climbed 2.2 percent to 242.52 at 1:23 p.m. in London, after the European Central Bank’s rate decision. The stocks earlier erased their losses amid speculation that Greece will cancel the referendum as Papandreou’s ruling Pasok party split over the question.

Paris stocks surge 3 percent after ECB interest rate cut

: French stocks surged more than three percent on Thursday after the European Central Bank in a surprise move cut its key interest rate by a quarter of a percentage point to 1.25 percent.

At 1300 GMT, the CAC 40 was up 3.20 percent to 3,210.25 points, with bank shares taking off as BNP Paribas gained more than 10 percent. France's blue-chip exchange had already been on the rise after sharp falls early Thursday on rumours that Greece would cancel plans to hold a referendum on its bail-out plan.

US Stock Futures Advance After Unexpected ECB Rate Cut
U.S. stock futures advanced Thursday morning, boosted by the European Central Bank's unexpected cut to a key interest rate and signs that Greece may avoid a referendum on a euro-zone bailout package.

About 45 minutes before Thursday's opening bell, Dow Jones Industrial Average futures rose 127 points, or 1.1%, to 11895, after being down more than 150 points in overnight trading. The Dow rallied 178 points on Wednesday, snapping a two-day losing streak that shed 573 points from the index. Standard & Poor's 500-stock index futures rose 15 points, or 1.2%, to 1249 and Nasdaq 100 futures advanced 16 points, or 0.7%, to 2331. Changes in stock futures don't always accurately predict stock moves after the opening bell.

Canadian Stocks Advance After ECB Cuts Benchmark Interest Rate
Canadian stocks rose for a second day after the European Central Bank cut its benchmark interest rate and companies including Suncor Energy Inc. (SU) reported earnings that beat average analyst estimates.

Suncor, Canada’s biggest oil and gas producer, advanced 2.9 percent as crude and natural gas climbed. Valeant International Pharmaceuticals Inc., the country’s largest drugmaker, rallied 15 percent after its third-quarter profit surpassed the average analyst estimate by 15 percent, excluding certain items. Yamana Gold Inc. (YRI), Canada’s fourth-biggest gold producer by market value, gained 2.6 percent after raising its dividend. The Standard & Poor’s/TSX Composite Index increased 83.86 points, or 0.7 percent, to 12,325.62 at 9:44 a.m. Toronto time.
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