Equities Retail UK

FTSE 100 watch: Footsie steady after ECB rate cut

Share this article!

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

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.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.