European stocks rally with ECB economic support pledged

European stocks had their best day in a week this Thursday (16), led by gains in banks and miners, after the European Central Bank (ECB) promised continued support to the economy, but still opting to gradually withdraw the stimulus.

The pan-European STOXX 600 index rose 1.2%, while the eurozone index closed up 0.9%.

The ECB has restricted stimulus only slightly as it pursues sustainable economic growth, saying it will end its 1.85 trillion Euro Pandemic Emergency Purchase Program (PEPP) by March.

But the central bank plans to double bond purchases to €40 billion in the long-term Asset Purchase Program in the second quarter, before reducing them to €30 billion in the third quarter.

“Despite a slightly faster transition phase after the PEPP ends, the open nature of purchases should be seen as a sign that the ECB is still significantly more ‘dovish’ (less inclined to tighten monetary policy) than their peers,” analysts at Rabobank said in a statement.

  • In LONDON, the Financial Times index rose 1.25% to 7,260.61 points.
  • In FRANKFURT, the DAX index rose 1.03% to 15,636.40 points.
  • In PARIS, the CAC-40 index gained 1.12% to 7,005.07 points.
  • In MILAN, the Ftse/Mib index appreciated by 0.44%, to 26,782.44 points.
  • In MADRID, the Ibex-35 index rose 1.27%, to 8,380.00 points.
  • In LISBON, the PSI20 index increased by 0.34% to 5,447.62 points.

Reference: CNN Brasil

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