Germany's DAX recoups brief losses after ECB says no talk of QE extension

Record ID: 84246

  • Title: Germany's DAX recoups brief losses after ECB says no talk of QE extension
  • Date: 20th October 2016
  • Summary: FRANKFURT, GERMANY (OCTOBER 20, 2016) (REUTERS) TRADING FLOOR AT FRANKFURT STOCK EXCHANGE STOCK EXCHANGE SIGN TRADERS DAX CURVE SHOWING LOSSES VARIOUS OF TRADERS VARIOUS OF BANK SHARES ON BOARD VARIOUS OF TRADERS INDICES ON BOARD (SOUNDBITE) (German) CAPITAL MARKETS ANALYST AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "Mario Draghi's announcements were generally what was expected. There were a few optimists who had hoped there would be additional stimulus for the financial markets, but this was not the case so we saw a period of disappointment but the realists were expecting Draghi to say what he did." VARIOUS OF TRADER BOARD SHOWING HIGH OF 10,677.5 POINTS (SOUNDBITE) (German) CAPITAL MARKETS ANALYST AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "The bond-buying programme will continue, including the 80 billion euro per month asset purchase programme - this will be continued for now and there will be more information at the year. It is likely that the bond-buying programme will continue at least to a degree until the end of 2017. The interest rate will remain low, probably for even longer than the bond-buying programme. So we didn't really find out much new today." VARIOUS OF TRADERS BOARD SHOWING LOW OF 10,592.89 VARIOUS OF TRADERS BOARD SHOWING GAIN OF 5.71 POINTS, OR 0.05 PER CENT VARIOUS OF TRADERS DAX CURVE SHOWING INCREASE AFTER DIP TRADING FLOOR
  • Embargoed: 4th November 2016 14:05
  • Keywords: ECB stocks Mario Draghi interest rates asset purchases
  • Location: FRANKFURT, GERMANY
  • City: FRANKFURT, GERMANY
  • Country: Germany
  • Topics: Economic Events
  • Reuters ID: LVA00154T7ZIL
  • Aspect Ratio: 16:9
  • Story Text:Germany's DAX briefly dipped on Thursday (October 20) after European Central Bank President Mario Draghi said the Bank had not discussed any plans to extend its quantitative easing programme beyond its scheduled end date in March 2017.
    Draghi said the Bank was committed to pursuing substantial asset purchases aimed at spurring growth and inflation, but gave few hints as to what measures the Bank could take later this year to ensure the asset-buying continued smoothly, saying only that policy-makers "took stock" of technical work on options being conducted by their staff.
    He added that the policymakers did not discuss either ending the programme or extending it.
    At the Frankfurt stock exchange, one trader said some were disappointed by the inconclusive comments, but the German index quickly recouped losses. Analyst at Oddo Seydler bank, Oliver Roth, said Draghi had not really sprung any surprises.
    "There were a few optimists who had hoped there would be additional stimulus for the financial markets, but this was not the case so we saw a period of disappointment but the realists were expecting Draghi to say what he did," Roth told Reuters.
    In another widely expected move, the ECB earlier on Thursday held interest rates at historic lows. It kept the deposit rate at minus 0.4 percent and maintained its guidance for rates to stay at their current or lower levels for an extended period.
    The ECB has provided unprecedented stimulus for years with sub-zero rates, free loans to banks and over a trillion euros in bond purchases, all in the hope of reviving growth and lifting inflation back to its target of just below 2 percent after more than three years of misses.
    The so-called quantitative easing (QE) scheme is now set to expire in March but the bank has always said that it would run until it saw a sustained recovery in inflation. Decisions on any meaningful extension of asset buys are expected at a meeting in December.
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