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Market Update

U.S. Indexes Advance on ECB Liquidity Measures


Author: Nichole Harper
ticker.com
Last Update: 12:35 PM ET June 05 2014

12:35 PM New York Stocks on Wall Street gained after European Central Bank unveiled historic measures to revive flagging economy. European markets traded near six-year highs. Softbank is nearing a deal to acquire T-Mobile US Inc for $40 billion.

Stocks on Wall Street fluctuated near record levels as European Central Bank unveiled historic measures to fight deflationary forces.

S&P 500 index increased 2.90 to 1,930.79 and the Nasdaq Composite added 9.18 to 4,261.09.

European Central Bank took a historic step and offered negative interest rate and other non-traditional measures to spur the euro zone economy.

The ECB lowered its benchmark interest rate to a record low of 0.15% from 0.25% and lowered deposit rate minus 0.10% from zero.

The ECB offered a 400 billion euro liquidity channel linked to bank lending and the central bank officers will also work on an asset purchase plan.

The euro decreased 0.2% to $1.356.

Separately, the Bank of England left its benchmark rate at a record low of 0.5% and kept its bond-purchase plan at 375 billion pounds or $636 billion.

Weekly initial claims for unemployment last week increased 8,000 to 312,000, the Labor Department said today.

The claims last week were revised higher to 304,000 from 300,000.

European Markets

European market indexes traded near a six-year high after European Central Bank President Mario Draghi unveiled new measures to revive flagging economy in the euro zone.

In London trading, FTSE 100 index slid 0.03% or 2.29 to 6,816.34 and in Frankfurt the DAX index rose 0.1% or 11.21 to 9,937.88.

In Paris, CAC 40 index gained 1% or 44.44 to 4,545.44.

Banks led the gainers, Societe Generale SA gained 3%, Intensa Sanpaolo SpA added 2.4% and Natixis SA 2.9%.

On the corporate front, Asos tumbled despite total revenue soared 26% to 2.5 billion. easyJet passenger count in May increased 7.9%.

Lloyds agreed to sell its real estate loans business for 352 million. Smith & Nephew jumped on takeover speculation. Wincanton profit surged.

Asian Markets

Stocks in Tokyo advanced for the eleventh day in a row and the yen edged lower against the dollar and the euro.

The Nikkei 225 Stock Average edged up 11.41 to 15,079.37 and the broader Topix index slid 1.20 to 1,232.75.

Softbank is nearing a deal to merge its U.S. based Sprint Corp with T-Mobile US Inc. At $40 a share, T-Mobile is valued at $31 billion and after the merger, Deutsche Telekom will control 15% stake in the merged wireless carrier.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc