3/10/2016, 2:21 PM (Source: TeleTrader)
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Euro Stoxx 50 index surges 3.7% after ECB's rate cut

Shares on European markets spiked after the European Central Bank said the the three main interest rates will be lowered by five to ten basis points. Asset purchases will be widened by €20 billion a month from April, to include investment grade euro-denominated bonds by non-bank issuers in the euro area. Additionally, policymakers said they will roll out a four refinancing operations with the maturity of four years. The main refinancing rate was cut to zero, the marginal lending facility's investment rate will be 0.25%, and the deposit facility rate was driven down to a negative 0.4%.

The Stoxx 50 jumped 2.56%, trailing the 3.55% gain of the Euro Stoxx 50 index (both 2:00 p.m. CET). The biggest gainers were financials: UniCredit, adding 11%, Intesa Sanpaolo, with a jump of 7.3%, and Societe Generale, rising 6.41%. They were followed by Generali ASS, Deutsche Bank and ING Groep. Deutsche Telekom led the rally in the Stoxx 50, with 3.57% in the green. The Euro Stoxx hit a value 3.7% higher than yesterday's close, at 3,128.71 points.

Gold dropped 0.57% to $1,246.65 per ounceat 2:19 p.m. CET, dragging palladium and platinum to same levels in negative territory, while silver broke even. The yellow metal earlier hit a daily low of $1,243.65 per ounce. The euro deepened losses against the dollar, plummetting 1.26% lower to 1.08656, after it touched a session minimum of 1.0863. The monetary zone's currency fell 0.8% compared to the pound, 0.6% against the yen and 0.3% versus the franc.

Baha Breaking News (BBN) / IT