Global stocks rise, US retail sales beat expectations, ECB cuts rates

From Google: 2024-10-17 09:52:29

Global stocks are on the rise as US retail sales exceed expectations and the ECB cuts interest rates. The S&P 500 is up 0.1%, the Dow Jones up 0.2%, and the Nasdaq up 0.3%. Meanwhile, the ECB cut its interest rate on its deposit facility to -0.5% and announced a new round of bond purchases.

US retail sales increased by 0.4% in August, beating expectations of a 0.2% rise. This marks the sixth consecutive month of gains, reflecting a strong consumer spending trend. The increase was mainly driven by purchases of automobiles, building materials, and health and personal care products.

The European Central Bank (ECB) lowered its deposit rate to -0.5% and announced a new round of quantitative easing. This decision comes as the Eurozone economy continues to face challenges, including slowing growth and low inflation. The ECB also introduced a tiered system for banks to mitigate the impact of negative rates.

Global stocks are responding positively to the news of stronger US retail sales and the ECB’s monetary policy decision. The FTSE 100 in London is up 0.2%, the DAX in Germany up 0.3%, and the CAC 40 in France up 0.4%. The optimism in the markets is driven by expectations of increased economic stimulus measures.



Read more at Google: LIVE: Global stocks rise as US retail sales climb more than expected and ECB cuts interest rates – Yahoo Finance UK