6th March 2015
The European Central Bank (ECB) finally confirmed its more than €1 trillion quantitative easing program on Thursday. Markets were not disappointed and a generally upbeat tone lifted European shares to seven-year highs, which were extended in Friday’s morning session.
Markets were also lifted by significant upgrades to the bank’s growth projections. Analysts now expect economic activity to grow 1.5 per cent in 2015 and 1.9 per cent in 2016.
However, the euro crashed to an 11-and-a-half-year low, as traders anticipated the coming flood of euros when the ECB begins purchasing assets with new money.
The bank confirmed it would purchase €60 billion worth of assets per month, that will primarily be made up of sovereign debt. When completed in 2017, the amount bought should total €1.1 trillion.
ECB president Mario Draghi said the stimulus should help the recovery “broaden and strengthen gradually”.
The bank also asserted that it would conduct no further stimulus measures, laying the responsibility for improvement in the economic situation in the hands of the eurozone’s member states.
Draghi called for governments to implement swift and credible economic reforms to “increase investment, boost job creation and raise productivity”.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.