January 31, 2023

Shares rise, euro falls after ECP confirms bond buy at end of third quarter

A broker looks at a map on his computer screen at a deal site at ICAP in London, UK on January 3, 2018. REUTERS / Simon Dawson

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  • Euro STOXX extends 600 gains
  • The euro turns negative and bond yields fall
  • The ECB maintains a policy stance
  • Press conference at 1230 GMT
  • Elon Musk has offered to buy Twitter for $ 41 billion

LONDON, April 14 (Reuters) – Shares rose and the euro fell as the European Central Bank showed a steady decline in its stimulus on Thursday, while Tesla CEO Elon Musk offered to buy Twitter for $ 41 billion in cash.

Confirming its earlier guidance, the ECB said it plans to reduce bond purchases this quarter – known as size easing – and then complete them at some point in the third quarter. read more

Following the ECB’s report, the broader Euro STOXX 600 (.STOXX) Extended gains, 0.5% increase. Codes in Paris and Frankfurt (.FCHI) Both added 0.4%.

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Travel and leisure stocks (.SXTP) Wizz Air, a low-cost airline, was one of the most lucrative in the morning trade (WIZZ.L) 9% more than the signs of encouraging summer bookings.

“We are confident that the asset acquisition plan will end in Q3,” said Stuart Cole, chief macro strategist at Equity Capital in London.

“This opens up the possibility of raising interest rates by the end of the year, so that market expectations for the first hike in December will be firm.”

The euro was down 0.25% at $ 1.0869 and the euro zone bond yields fell sharply, with German bond yields down nearly 4 basis points at 0.046% and 0.09%, two years before the ECB report. .

Although the ECB has moved away from a very bad position, a string of central banks around the world have tightened policy as they struggle to control inflation.

The Bank of Korea surprised markets with a rate hike on Thursday and the Monetary Authority of Singapore also tightened policy.

New Zealand’s central bank raised interest rates by 50 basis points on Wednesday, the biggest rise in two decades. The Bank of Canada raised rates similarly, making its biggest single move in more than two decades and flagging further ups and downs.

Market players said the growth of key economies will be crucial to whether central banks can tighten policy further.

“The big question for investors now is not whether we should set prices for higher inflation, but rather how many of them can be offered instead of fixed inflation?” Said Hugh Kimper, global market strategist at JPMorgan Asset Management.

“The development outlook is important there.”

MSCI Global Equity Code (.MIWD00000PUS), Tracking shares in 50 countries, added 0.2%. Wide index of MSCI of Asia-Pacific equities outside Japan (.MIAPJ0000PUS) It was previously up 0.4%.

The tariff increase cycle is disabled

Musk Twitter Auction

Wall Street futures gauges fell slightly in the number of lenders that reported first-quarter earnings. read more

Twitter Inc (TWTR.N) After Tesla CEO Elon Musk offered to buy the social media company for about $ 41 billion, the social media company jumped 12%, saying it needed to go private to see effective changes. read more

Hopes that US inflation may have peaked led US Treasury revenue to extend their decline, and the dollar fell.

Yields on 10-year Treasury notes were 2.6806%, up from a three-year high of 2.836% on Tuesday, lower than what investors feared.

The dollar fell a day earlier from a two-year high as US yields suspended their rally.

The dollar index, which measures the unit against six allies, rose 0.1% to 99.861, after falling 0.5% overnight from its high of 100.52.

Oil prices fell amid thin trading volume ahead of the Easter break as US oil stocks weighed on larger-than-expected growth in trade against tightening global supplies.

Brent futures were down $ 1.5% at $ 107.23 a barrel. read more

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Tom Wilson Report in London; Editing Bernadette Bam

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