Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Indexes  >  Switzerland  >  Stoxx Europe 600    SXXP   EU0009658202

My previous session
Most popular
News SummaryAll newsNews of the components ofTweets

Euro and bond yields fall as ECB takes baby steps to QE exit, signals caution

share with twitter share with LinkedIn share with facebook
share via e-mail
03/08/2018 | 05:33pm CEST
FILE PHOTO:Illustration photo of U.S. Dollar and Euro notes

LONDON (Reuters) - The euro fell and bond yields in southern Europe hit one-month lows on Thursday, after the ECB dropped a pledge to boost bond buying if needed but suggested subdued inflation would ensure a slow route back to policy normalisation.

European shares rose to one-week highs, led by banks, which tend to benefit from tighter monetary policy prospects.

While the ECB took a small step towards weaning the euro zone economy off protracted stimulus by dropping its easing bias, ECB President Mario Draghi said monetary policy would remain "reactive" and that underlying inflation was subdued.

That prompted the euro to give up the gains it posted after the ECB's post-meeting statement, while the lack of any signals of broader changes to the policy stance also pushed bond yields in Germany and France off two-week highs.

"They toned down the easing bias but there is still a willingness to ease and the tone of Draghi's comments was still dovish, stressing that there is still not a convincing uptrend in inflation," said Chris Scicluna, head of economic research at Daiwa Capital Markets.

"He also talked about the impact a trade war could have... He is a dove and it's clear he still wears the trousers on the Governing Council."

Keeping broader policy unchanged, the ECB said it could still extend its 2.55 trillion euro ($3.16 trillion) bond purchase scheme beyond September if needed.

But it omitted a reference to bigger purchases, a signal that it remains on track to end its three-year-old stimulus scheme before the end of 2018.

The euro <EUR=EBS> fell 0.7 percent to $1.2330 following Draghi's comments, after climbing to a session high of $1.2446 soon after the policy decision.

German and French five-year bond yields came off two-week highs to end up lower on the day as the session drew to a close. Germany's 10-year government bond yield was 2 basis points lower at 0.63 percent <DE10YT=RR>.

Southern European debt, also sensitive to changes in ECB monetary policy, saw a strong rally, benefiting from Draghi's dovish line.

Portugal's 10-year bond yield fell to a six-week low at 1.81 percent <PT10YT=RR>, while Spanish 10-year bond yields hit a one-month low at 1.41 percent. Italian 10-year bond yields dropped below 2 percent to also hit a one-month low. <IT10YT=RR> The pan-European STOXX 600 <.STOXX> hit a fresh session high as Draghi spoke, up more than 1 percent, while euro zone stocks <.STOXXE> were also at a session high and up a similar percentage.

(Reporting by Tommy Wilkes, Abhinav Ramnarayan, Fanny Potkin, Danilo Masoni, Saikat Chatterjee and Dhara Ranasinghe; Editing by John Stonestreet and Andrew Heavens)

By Dhara Ranasinghe and Tommy Wilkes

Stocks mentioned in the article
ChangeLast1st jan.
MILAAN-FTSE/MIB 0.22% 22483.6 End-of-day quote.2.67%
STOXX EUROPE 600 0.11% 378.73 Delayed Quote.-2.79%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on STOXX EUROPE 600
06:01pEUROPE : European shares barely wince as China retaliates with more tariffs
09/17EUROPE : European stocks keep steady amid tariffs fears; H&M surges
09/14EUROPE : European shares score best week since July
09/13EUROPE : New trade talks revive European stocks, momentum slows
09/12EUROPE : European stocks shrug off trade worries as oil stocks rally
09/12EUROPE MARKETS: European Stocks Rise, Led By Surge For Biotech Galapagos
09/11European share bounce stalls in trade dispute void
09/10LONDON STOCK EXCHANGE : Sterling surge pulls FTSE back, RPC soars on private equ..
09/10Volvo Cars drops IPO due to trade tensions and auto stocks downturn
09/10Volvo Cars drops IPO due to trade tensions and auto stocks downturn
More news
News of the components of STOXX EUROPE 600
10:39pBP : Commission weighs next step in gas flaring
10:16pORSTED : Ørsted divests 50% of Hornsea 1 Offshore Wind Farm
09:05pCLOUD-BASED CONTENT MANAGEMENT SERVI : The Top Players Including ABB, GE-Alstom ..
09:00pGEMALTO : and R3 blockchain platform let users control their Digital ID
08:58pBUILDING INFORMATION MODELING SOFTWA : This report focuses on the top players in..
08:32pMUENCHENER RUECKVERSICHERUNG : 670-mph hyperloop from Ohio to Chicago moves clos..
08:18pBAE : Qatar-British deal on Typhoon jets may not happen
More news
Duration : Period :
Stoxx Europe 600 Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends STOXX EUROPE 600
Short TermMid-TermLong Term
Top / Flop STOXX EUROPE 600
CEZ A.S. 569 Delayed Quote.14.17%
SCHIBSTED 330.45 Real-time Quote.11.00%
PANDORA 403 Delayed Quote.6.76%
CLARIANT 25.49 Real-time Quote.6.03%
OSRAM LICHT 38.225 Real-time Quote.5.80%
ITV 153.25 Delayed Quote.-3.01%
NMC HEALTH 3430 Real-time Quote.-3.27%
KINNEVIK 267 Delayed Quote.-7.64%
ZALANDO 36.43 Real-time Quote.-13.05%
Heatmap :