Wall St up 1.5%, euro at 11-year low on debut of ECB plan Robust US economic data added to gains on Wall Street, where the Dow Jones industrial average provisionally ended ahead 260.6 points, or 1.48 percent, at 17,814.88, the S&P 500 rose 31.08 points, or 1.53 percent, to 2,063.2, and the Nasdaq Composite added 1.78 percent to 4,750.40. Wall Street jumped 1.5 percent and European shares climbed to a seven-year high on Thursday as world markets cheered the European Central Banks new stimulus program, worth more than 1 trillion euros, while the euro slipped to an 11-year low. Investors readying for a rise in global liquidity initially lifted U.S. Treasuries, whose relatively rich yields grew more attractive with prospects of lower euro zone bond yields, before prices turned lower. Its likely to impact yields everywhere, said Aaron Kohli, an interest rate strategist at BNP Paribas in New York. When you put this much stimulus into the markets, its going to go other places that you hadnt intended, and one of those places is going to be US debt. The ECBs program to buy euro-zone government bonds, along with its existing schemes, will pump 60 billion euros a month into the euro zone economy. It is set to run from March until September 2016. ECB President Mario Draghi made clear the plan could be extended if the bank felt that was necessary.
Posted on: Fri, 23 Jan 2015 04:16:30 +0000