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ECB reaches first-month QE target

Published Wednesday, April 8th, 2015

European stocks made a lively return from the Easter break with the Eurofirst 300 tracking the positive tone on global equities indices to bounce to a fresh seven-year peak as Friday’s soft US jobs report continued to lend support to risk appetite. There was further reason to cheer as investors welcomed the final eurozone services PMI reading for March which, despite coming in shy of expectations, rose to 54.2 from 53.7 in the previous month.  The latest batch of inflation data from the currency-bloc also went some way to lifting sentiment as figures revealed that producer prices rebounded by 0.5% in February in what was the first rise for five months.

The upbeat mood coincided with the imminent one month anniversary of the ECB’s unprecedented bond-buying programme in which it confirmed that it was on target to add a planned €60 billion to the zone’s economy, with €52 billion coming from government debt purchases. Such measures have bolstered euro-area investor morale in recent times, a gauge of which surged to close to an eight-year high this month. Moreover, the impact on the region’s borrowing costs were highlighted yesterday as Spanish short-term debt yields briefly joined equivalent Bunds in negative territory.

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Posted by Stephen Brennock

Stephen Brennock joined PVM in 2013 after having worked as a project manager for a business development firm. He graduated with a degree in Business Management in 2007.