FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

Asian markets join global rally after ECB debt plan Vote_lcap68%Asian markets join global rally after ECB debt plan Vote_rcap 68% [ 178 ]
Asian markets join global rally after ECB debt plan Vote_lcap18%Asian markets join global rally after ECB debt plan Vote_rcap 18% [ 47 ]
Asian markets join global rally after ECB debt plan Vote_lcap13%Asian markets join global rally after ECB debt plan Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Asian markets join global rally after ECB debt plan

Asian markets join global rally after ECB debt plan

4 posters

Go down  Message [Page 1 of 1]

wsaman

wsaman
Manager - Equity Analytics
Manager - Equity Analytics

Asian stock markets have risen, joining a global rally, after the European Central Bank (ECB) unveiled a plan targeted at easing the region's debt crisis.

The ECB said it would buy bonds of the bloc's debt-ridden nations in a bid to bring down their borrowing costs.

The implied borrowing costs for Spain and Italy fell after the announcement.

Japan's Nikkei 225 index rose 1.9%, Korea's Kospi gained 2.3% and Hong Kong's Hang Seng added 2.4%.

"We think this is a credible plan to addressing the issue, and while there are still political hurdles, we expect those will be addressed," said Alec Young, global equity strategist at S&P Equity Research.

'Ready to act'
Continue reading the main story
“Start Quote

The markets were looking for a strong decisive action and a commitment from the central bank that they are ready to act if any issues blow up in the region's bigger economies”

Justin Harper IG Markets

The borrowing costs for some of the eurozone's larger economies, such as Spain and Italy, had risen to levels considered unsustainable earlier this year.

That led to concerns that these nations would no longer be able to borrow money from international investors and, therefore, would not be able to repay their debts, further escalating the region's debt crisis.

Many investors feared such developments would not only hurt the eurozone's growth, but could also derail the global economic recovery.

That would have had a knock-on effect on Asia's export-dependent economies, which rely heavily on global demand.

However, the ECB's announcement, and the drop in borrowing costs of Spain and Italy thereafter, has helped allay those fears.

Markets in the US rose, with the Dow Jones index hitting it highest level in almost five years.

In Europe, Germany's Dax index closed 2.9% higher, while France's Cac 40 jumped 3% and the UK's FTSE 100 rose 2.1%.

"The markets were looking for a strong decisive action and a commitment from the central bank that they are ready to act if any issues blow up in the region's bigger economies," Justin Harper of IG Markets told the BBC.

"Last night they got that."

'Risk appetite'

The ECB announcement also provided a boost to the euro currency, which rose against the US dollar and the Japanese yen.

The euro was trading at $1.263 in Asian trading. It also rallied against the Japanese currency to 99.63 yen.
An investor looking at stock market boards Investors have been wary of the impact of the eurozone debt crisis on Asian businesses

Analysts said that the ECB's plan had boosted investor morale and that they were more confident of investing in riskier assets.

"The ECB's actions afford time, allowing risk appetite to stage a comeback, for now," said Vincent Chaigneau, a strategist at Societe Generale.

However, they warned that while the ECB's plan had helped allay market fears, the crisis was far from over.

"Mr Draghi has won a battle, but cannot win the euro area crisis war by himself," Mr Chaigneau said.

"The hardest task of all - getting governments to drop posturing in return for leadership and deep reforms - still awaits us."

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

Thank you for the update.

K.Haputantri

K.Haputantri
Co-Admin

So this is the real reason behind the recent run.
Thanks wsaman for sharing.

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

Thanks for the news.

"Japan's Nikkei 225 index rose 1.9%, Korea's Kospi gained 2.3% and Hong Kong's Hang Seng added 2.4%."


Lets add Sri Lanka's CSE rose 2%

bounce bounce

Sponsored content



Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum