ECB QE Prospects Boost Indices but Weigh on Euro, Tesco Announces Fightback Plans for 2015
January 8, 2015 5:00 am
Asian stocks rose on Thursday after upbeat U.S. employment data and a halt to a slide in oil tempered investor risk aversion, while the Euro held near a nine-year low. U.S. stocks rebounded on Wednesday from five straight sessions of losses after strong private sector jobs data and as minutes from the most recent Federal Reserve meeting reassured investors the bank was in no hurry to start raising interest rates. The Dow closed 212 points higher at 17,584, the S&P500 closed 23 points higher at 2,025.
Optimism over more ECB stimulus may have helped equities but the prospect of further central bank easing was detrimental for the Euro, which slid to a new nine-year low against the Dollar. The common currency fetched $1.1823, within close proximity of $1.1802 hit overnight, its lowest since January 2006. The Dollar was better bid against the Yen after the rebound in stocks dampened appetite for the safe-haven Japanese currency. The Dollar gained 0.4% to 119.70 Yen after pulling away from a three-week low of 118.05 hit on Tuesday. The common currency initially dipped against the Yen to a fresh two-month low of 140.58, but has since popped to around 141.50 as gains in global stocks reduced demand for the Yen. Sterling plumbed as low as $1.5055 and last changed hands at $1.5093.
Aided by an unexpected drop in U.S. crude inventories for last week, U.S. crude was up 29 cents at $48.94 a barrel, while Brent was up 15 cents at $51.30.
The supermarkets are back in focus today as Britain’s biggest grocer Tesco plans to sell assets and cut hundreds of millions of pounds of costs to fund lower prices in store as part of its plan to fight back from the biggest crisis in its 95-year-history. The news was well received by the market and the stock is up 5.5% at 191p per share in early trade.
Asian stocks rose on Thursday after upbeat U.S. employment data and a halt to a slide in oil tempered investor risk aversion, while the Euro held near a nine-year low. U.S. stocks rebounded on Wednesday from five straight sessions of losses after strong private sector jobs data and as minutes from the most recent Federal Reserve meeting reassured investors the bank was in no hurry to start raising interest rates. The Dow closed 212 points higher at 17,584, the S&P500 closed 23 points higher at 2,025.
Optimism over more ECB stimulus may have helped equities but the prospect of further central bank easing was detrimental for the Euro, which slid to a new nine-year low against the Dollar. The common currency fetched $1.1823, within close proximity of $1.1802 hit overnight, its lowest since January 2006. The Dollar was better bid against the Yen after the rebound in stocks dampened appetite for the safe-haven Japanese currency. The Dollar gained 0.4% to 119.70 Yen after pulling away from a three-week low of 118.05 hit on Tuesday. The common currency initially dipped against the Yen to a fresh two-month low of 140.58, but has since popped to around 141.50 as gains in global stocks reduced demand for the Yen. Sterling plumbed as low as $1.5055 and last changed hands at $1.5093.
Aided by an unexpected drop in U.S. crude inventories for last week, U.S. crude was up 29 cents at $48.94 a barrel, while Brent was up 15 cents at $51.30.
The supermarkets are back in focus today as Britain’s biggest grocer Tesco plans to sell assets and cut hundreds of millions of pounds of costs to fund lower prices in store as part of its plan to fight back from the biggest crisis in its 95-year-history. The news was well received by the market and the stock is up 5.5% at 191p per share in early trade.
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