Persimmon (PSN) jumped 2% to £19.81, Berkeley (BKGH) rose 1.8% to £33.71, Taylor Wimpey (TW) added 1.4% to 200.7p and Barratt Developments (BDEV) traded 1.4% higher at 617.5p.
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As the world’s most important central bank and with the United States dollar dominating global finance, the Fed will prove far more influential in shaping sentiment towards developing economies.
Indeed, business activity in the euro zone picked up at its fastest pace since mid-2011 last month, third quarter economic growth was running at a respectable 1.6 percent and lending is increasing at the quickest rate in four years. It makes it harder for indebted countries such as Greece to restore their finances.
The ECB also said it would announce further measures at a news conference later by bank President Mario Draghi. Because the monthly cap of 60 billion euros in bond purchases was maintained, that will increase the overall size of the 1.1 trillion euro ($1.2 trillion) program by 360 billion euros. The ECB will use the new money to buy government bonds and other securities. Sales were expected to grow 0.2%. With inflation running near zero and likely to miss the bank’s target of almost two per cent for years to come, the ECB had all but committed to action, leaving investors guessing only what measures it would pick from an exceptionally long and sometimes contentious list.
But it kept its main main refinancing interest rate, the price it charges banks to borrow funds from it, unchanged at 0.5pc.
“It is very hard to cut 1 million bpd collectively”.
Initially a controversial policy, negative interest rates are now in place across much of Europe, with central banks in Switzerland, Sweden and Denmark also adherents. For 2017, the inflation is seen reaching 1.6 per cent, down from the previous prediction of 1.7 per cent, said ECB President Mario Draghi.
The ECB moved its deposit rate down 10 basis points to -0.3 per cent. But the cut to the deposit rate was smaller than many investors had expected.
Analysts had expected the deposit rate to be cut to -0.4% and for asset repurchases to be increased above the current level of 60 billion euros. The ECB is set to announce its changes to the Eurozone interest rates. He said that the European Central Bank would act further if it deemed necessary to reach its inflation target, adding that the deposit rate can “empower the transmission” of its QE program.
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst.
The ECB under Draghi, he said, has a “history of exceeding market expectations when it comes to monetary stimulus and I expect the same to happen again today”. That can make credit easier to get and raise inflation, which is now considered to be too low at only 0.1 percent annually.
USA stocks extended losses by Thursday morning after Federal Reserve Chair Janet Yellen reiterated her optimism over the US economy, paving the way for a December rate hike.
Official figures show that retail sales across the eurozone remain sluggish despite the boon offered to consumers by cheap oil and subdued consumer price gains.
Inflation was at 0.1 percent for the eurozone in November, unchanged from October.
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That’s a sign of weak demand in the economy.
