News Column

European Shares Jump as Central Banks Stick With Easy Money

July 11, 2013

European shares rose on Thursday after major central banks reaffirmed their commitment to easy money policies.

The benchmark STOXX Europe 600 Index was 0.79-per-cent higher at 297 points in late morning trading, buoyed by comments from the US Federal Reserve, the European Central Bank and the Bank of Japan ruling out an early exit from their monetary stimulus measures.

The gain was even more pronounced among national bourses with Europe's premier stock market in London rising 0.92 per cent. Stocks in Frankfurt were up 1.2 per cent and by 0.96 per cent in Paris.

On Wednesday, US Federal Reserve chairman Ben Bernanke said the Washington-based central bank's "highly accommodative monetary policy" would continue for the foreseeable future.

This was followed by Japan's central bank announcing Thursday that it left its easy money policy stance unchanged, while painting an optimistic picture of the nation's economic outlook.

At the same time, the European Central Bank's monthly bulletin reaffirmed comments made last week by ECB chief Mario Draghi committing the bank record-low interest rates for an extended period of time.

"The governing council expects the key ECB interest rates to remain at present or lower levels for an extended period of time," the bank wrote in its July monthly report released Thursday.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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