FTSE 100 watch: Footsie steady after ECB rate cut
The FTSE 100 has climbed marginally higher in today’s session, with investors responding positively to the European Central Bank’s (ECB) move to cut its deposit rate and launch a new bond-buying programme. In individual movers, Wm Morrison Supermarkets (LON:MRW) and British American Tobacco (LON:BATS) are outperforming the index on the back of corporate updates
FTSE 100 marginally higher
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As of 12:49 BST, the Footsie had added 19 points to stand 0.26 percent higher at 7,357.03. Sentiment has improved today as the ECB decreased the interest rate on the deposit facility by 10 basis points to a negative 0.50 percent. The bank said that it will also restart net purchases at a monthly pace of €20 billion as from November 1.
“Governing Council expects them to run for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates,” the ECB said.
“The decline in production clearly demonstrates that the EU is facing downward economic pressure,” Sven Schulte-Hillen, acquisition and finance partner at Pinsent Masons commented, as quoted by the Guardian, adding, however, that “many will question how effective the ECB means will be”.
Individual blue-chip movers
In individual FTSE 100 risers, Morrisons is outperforming the blue-chip index as it posted a rise in interim profits and announced a special payout for shareholders. Shares in the grocer are changing hands 3.40 percent higher at 200.60p.
British American Tobacco has been another prominent FTSE 100 riser, with investors responding positively to the company’s simplification plans aimed at freeing up more cash for its new generation products. BAT’s shares are up by 1.71 percent at 3,095.00p.
The FTSE 100 was 0.06 percent up at 7,342.24 points as of 13:19 BST on Thursday, 12 September 2019.