European Central Bank calls halt to quantitative easing, despite 'soft' euro

European Central Bank calls halt to quantitative easing, despite 'soft' euro

European Central Bank calls halt to quantitative easing, despite 'soft' euro

Global stocks slipped back in the morning after the Fed warned that the "punch bowl" will be pulled away from investors at an even quicker pace than anticipated.

China's central bank sparked concerns over the health of the economy earlier in the day when it left short-term rates unchanged, surprising markets which had expected it to follow the Fed's hike, as it has tended to do.

The statement also said its interest rates would not rise until at least summer 2019.

However, in an announcement deemed by some investors as surprisingly dovish, the central bank indicated that it could keep interest rates at their current ultra-low levels until well into 2019.

There's little doubt, however, that the European Central Bank stimulus program has helped heavily indebted countries like Italy borrow at unusually cheap rates.

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In U.S. Treasuries, benchmark 10-year notes last rose 12/32 in price to yield 2.9351 percent, from 2.979 percent late on Wednesday.

Euro slides: The euro has slumped 2.5% against the U.S. dollar after the European Central Bank announced plans Thursday to end its €2.5 trillion ($2.9 trillion) stimulus program at the end of 2018.

The kiwi rose to 93.24 Australian cents from 92.89 cents late yesterday, when figures showed the number of people employed in Australia rose by 12,000, undershooting an expected 19,000 increase.

The rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain at 0.00%, 0.25% and minus 0.40%, respectively.

The Stoxx Europe 600 edged up 0.2% shortly after markets opened, following its biggest daily gain since April as investors reacted positively to news that a eurozone rate increase remained a distant prospect. The ECB announced that it would end its bond-purchase programme at year-end but signalled that any interest rate hike was still distant.

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But on Friday U.S. President Donald Trump announced tariffs on $50 billion worth of Chinese imports and Beijing threatened to respond in kind, stopping the market in its tracks.

The European Central Bank (ECB) is going to start reducing the volume of bonds it buys under its asset purchase programme, after the Governing Council of the European Central Bank in Riga on 14 June.

US DATA: The data for the USA economy released on Thursday were encouraging.

The Dow Jones Industrial Average fell 25.89 points, or 0.1 percent, to 25,175.31, but the S&P gained 6.86 points, or 0.25 percent, to 2,782.49 and the Nasdaq Composite added 65.34 points, or 0.85 percent, to 7,761.04. If banks have more $$, they can lower interest rates (because they're already getting enough from the bond sales).

The ECB sent the euro, the Australian dollar and emerging market currencies tumbling after it signalled the eurozone recovery was not almost as strong as everyone thought and that interest rates there were not expected to rise until late next year.

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Volume on United States exchanges was 6.75 billion shares, compared with the 6.70 billion average for the full session over the last 20 trading days.

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