Markets jump after “QE on steroids” announcement
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Markets across Europe have jumped after central banks across the world announced a co-ordinated programme to improve financial liquidity.
The central banks are making it cheaper for commercial banks to buy US dollars, as well as making sure they have access to funds when needed.
The US Federal Reserve, the European Central Bank, the Bank of England and the central banks of Canada, Japan and Switzerland are all involved in the initiative which is set to start on December 5.
At close, the FTSE 100 was up 3.16 per cent to stand at 5,505, while the French Cac 40 and the German Dax also saw big gains.
Speaking to Reuters, CMC Market analyst Michael Hewson says: “It gives an indication that monetary authorities are prepared to do what is required to stop a freeze up in the funding markets.
“But, basically all they are doing here is quantitative easing on steroids. It does not deal with the underlying issues.”
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