European shares have reversed earlier losses to move higher after the ECB policy announcement confirmed the Central Bank’s bond-buying programme wind down would end in December. The ECB added that interest rates are set to remain steady until summer 2019.
By 1345 BST, the EUROSTOXX 600 was 0.37% higher, while the EUROSTOXX 50 had gained 0.39%. Regional bourses were also higher. The German DAX rose 0.42%, the French CAC was up 0.68% and the Spanish IBEX was 0.12% in positive territory.
Prior to this meeting, the ECB had been set to end its massive QE programme in September. However, recent data has shown the economic recovery is not yet quite as entrenched as the Bank would prefer.
There will be a change to the level of bond-purchases the Central bank will make, with its being further reduced from the current lower €30 billion amount, to €15 billion in the final three months of the year.
“The Governing Council anticipates that, after September 2018, subject to incoming data confirming the Governing Council’s medium-term inflation outlook, the monthly pace of the net asset purchases will be reduced to €15 billion until the end of December 2018 and that net purchases will then end,” the ECB’s meeting statement said.
Further details are currently being heard in the post-meeting press conference.
While investors had a close eye on the ECB meeting, there were some interesting stock movers, too.
Volkswagen shares were up 0.37% at €161.00 after the firm said it wouldn’t contest a German court decision to fine the car maker €1 billion for its emissions cheating scandal.
Renault shares are also in the green, rising 1.85% to hit €85.18 as CEO Carlos Ghosn told the FT he would step down from that roll before his term ends in 2022.
Rolls-Royce shares are also positive amid job cut plans as it announces restructure details.