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ECB stimulus plans fail to boost financial markets

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By Euronews  with REUTERS
ECB stimulus plans fail to boost financial markets

<p>The European Central Bank pulled out all the stops with its rate cut and stimulus measures, but the region’s stock markets enjoyed only a brief bounce before investors focused on <span class="caps">ECB</span> chief Mario Draghi’s statement that interest rates will only be cut again in the most extreme of circumstances.</p> <p>However the new round of cheap loan money from the <span class="caps">ECB</span> did push up bank shares. Among the gainers were Spain’s Banco Popular, UniCredit, Intesa Sanpaolo and <span class="caps">BNP</span> Paribas.</p> <p>The euro initially fell in value against the dollar but then jumped to a three week high against US currency.</p> <p>Some traders fretted about bubbles from yet more money flooding into the economy while other approved of the stimulus measures to revive growth and inflation.</p> <p>But underlining the difficulty of the <span class="caps">ECB</span>’s task, oil prices – a key part of the inflation problem – slipped again.</p>