Düsseldorf/Frankfurtit took a Long time, then it is the Dax. Before the year 2016 is coming to its end, climb of the benchmark index, for the first Time since exactly a year above the 11,000-points mark. In early trading, the German stock index listed on the last a half a percent firmer at 11.041 points. The impetus for the late gasp comes from the monetary policy. On the parquet, it is firmly convinced that the European Central to open the Bank at today’s Council meeting, the monetary floodgates. This drives the rates vigorously, yesterday there was a Two-percent-Plus in Frankfurt. After nearly four months of sideways movement it smells like year-end rally.
investors expect that the Supreme guardian of the currency, the Euro-Zone decide at the meeting at eleven o’clock, an extension of the bond-buying program. So far, ECB chief Mario Draghi and his Executive team had kept back from further steps, hesitated, but action will be signaled. The Italian had stressed at the last two meetings that evaluate the effect of the running programs, before you refined Changes. Enough data should be available and time is of the essence. At least the speculators see it that way.
The Quantitative Easing, the well-known bond-buying programme will run until March 2017. It is designed to stimulate lending in order to maintain Inflation close to the Euro area to the desired value, at which the experts of price level stability talk. Of the target of just under two percent, the inflation rate but is still far away. This is exactly why the Central Bank is flooding the markets with money, but preferably to the equity markets and the Rally in the stock markets. With its extremely loose monetary policy, the ECB also tries to the economy in the Euro-Zone boost, but this develops only cumbersome.
The Central Bank pumped in a month for 80 billion euros in the markets. The mechanism is: Because the ECB is buying so many government bonds of its member countries, a decrease in these papers yields, which should make them unattractive to banks. The money houses are then, in turn, your money into the real economy in the Form of loans. How far this is so far successful, you have to show the ECB still. In their evaluations, they pointed to significant effects in the fundamentals. But not only the state bonds, and also promissory notes of private companies are now part of the program, which comes to a total volume of 1.7 trillion euros.
so Far, it was said that the program will run until “at least March 2017″. This is exactly why the investors expect that the ECB’s governing Council will now decide on an extension of the program. The results of the meeting will be announced at 13.45. At 14.30 Mario Draghi faces the press. When the Italian steps up to the MIC, depends on the financial world at his lips. Every word the traders put on the gold scale. The game is now known. The President of the ECB has already shown in is second to none, that modern monetary policy is communication. Who can forget his saying, “whatever it takes” from the summer of 2012, he brought the turning point in the Euro crisis.
he could speak to the difficulties of Italian banks. The crisis Bank Monte dei Paschi has asked the Central Bank on Wednesday to postpone for your rescue plan until mid-January.
After the close of trading in Europe on Wednesday, the US stock markets, which were previously located only at a slight Plus, for the record, The Dow Jones and the S&:; P500 Index had risen by 1.6 and 1.3 per cent on 19.549 and 2241 counter, and thus as high as never closed. The Nasdaq Composite gained 1.1 percent. The reason for the Rally, on speculation a market-friendly policy of the future President Donald Trump, according to traders.
The record hunting on Wall Street has also given the stock markets in the far East a further boost. The prospect of an economic stimulus program of the future US President Donald Trump laces still optimism, traders said. However, not only in the USA but also in Asia and Europe, the investors took place on Thursday reason to be Confident. So a surprising increase in the Chinese exports and signaled that, for years, spoiled by success and economy of the people’s Republic stabilized after its recent setbacks.
In Tokyo, the castle of the benchmark index, the Nikkei is 1.5 percent higher on 18.765 points. The MSCI Index for Asian stocks outside of Japan was 1.3 percent in the Plus. The South Korean stock market has traded almost two percent higher, which was attributed mainly to a high-altitude flight, the Samsung-share. Investors bet on the success of new products for the Smartphone manufacturer. Against the Trend in the Region, the market in Shanghai.
Overall, however, the integrity of negative developments in the economy and politics in the stock markets largely down. Thus, the investors of weaker economic data from Japan unimpressed. The government also revised its Figures for economic growth in the third quarter, down significantly.