The DJIA closed at an all-time high of 16,836.11 Thursday, while the S&P 500 made another record close at 1,940.46, both gaining about 0.6% on the day. A more mixed session in
Spreadbetters are indicating that the
Following two weeks of relatively range-bound trading within financial markets, a certain amount of volatility returned on Thursday when the ECB became the first major central bank to introduce a negative deposit rate. In an attempt to stave off deflation and boost economic growth, the ECB said it will start charging banks 0.1% to park money with it. It also cut the main refinancing rate to 0.15% and announced a range of other unconventional measures.
Although a certain amount of what was announced had long been priced in by markets, the immediate reaction by investors was to sell the euro and send stocks higher, with major European indices in particular feeling the benefit. Indeed the German DAX broke above the 10,000 point level for the first time ever.
European stocks then consolidated a little from those highs, and stocks in the
"After a couple of hours to digest the information at hand, it appears the market is viewing the ECB’s actions as having met expectations for this meeting," says
The most surprising reaction was in the euro, which turned sharply around after reaching a four-month low against the dollar just above
Markets may well return to their range-bound trading in the short-term, however, ahead of the monthly US non-farm payroll report, due for release at
"What with the events of yesterday, many people would be forgiven for forgetting that today in fact marks the return of the US jobs report, meaning a similar rollercoaster ride of volatility could be just around the corner," says
Ahead of the main economic event,
Most Popular Stories
- Florida Warns Beach-goers About Flesh-eating Bacteria
- Sutherland Responds to 'Unprofessional' Jibe
- Business Leaders Set for CHCC Convention
- Is California Going to Land Tesla's Battery Plant?
- DishLATINO Wins Hispanic TV Award
- Adrienne Bailon Disses Ex-Lover Rob Kardashian
- Twitter's Stock Rises on Stellar Revenues
- Ebola Outbreak Strikes Fear in Minnesota
- Beyonce Seen Apartment Shopping in NYC Without Jay Z
- U.S. Consumer Confidence at Strongest Since 2007