FTSE drops on back of fresh QE
Markets show mixed reaction to Bank of England new QE programme and Chinese rate cuts.
The FTSE 100 opened 11.8 points down this morning, following the Bank of England’s announcement that it is boosting its quantitative easing programme by £50bn, as it battles to bring the ailing UK economy out of the doldrums.
The boost in the size of the asset purchasing programme will bring its total to £375bn, according to a statement following the Bank’s July rate-setting committee meeting this week.
China’s announcement to cut interest rates by 31 basis points yesterday was a positive for local stockmarkets. China’s main stock exchanges, the Shenzhen Stock Exchange Constituent, was up 277.52 points to 9,690.
Finally, as eurozone politicians struggle to save the Euro, the MSCI Euro Index was down more than two points to 849.42.