European stocks climbed in early action Thursday after the European Central Bank surprised markets by unveiling a major asset-purchase program to combat the financial difficulties caused by the coronavirus outbreak.
The Stoxx Europe 728 SXXP,
The French CAC PX1,
The ECB said
ECB President Christine Lagarde said that “there are no limits to our commitment to the euro,” which reminded many of the “whatever it takes” comments from Mario Draghi, her predecessor.
“The policy reactions did not come with one big coordinated swoop, but the package of government stimulus, liquidity and guarantees combined with Lagarde’s ‘whatever it takes’ as it stands right now is strong,” said analysts at ING Economics.
The ECB move had a big impact on Italian government bonds, with yields falling (basis points on the Italian
Meanwhile, the U.S. Federal Reserve announced a program to support money-market mutual funds , and the U.S. Senate approved the House-passed coronavirus legislation which grants sick leave to hourly employees and expands unemployment insurance , as negotiations continue on a broader stimulus package.
Of stocks on the move, Dutch insurer Aegon NV AGN, 7. (% ) jumped 16% after saying it hasn’t so far observed any material impact on claims ratios due to the coronavirus pandemic.
Munich-based lighting manufacturing Osram Licht OSR, – 0. (%) slumped % after withdrawing 202889023 targets.
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