LONDON: The euro sagged and equities pushed higher on Thursday as the ECB warned of threats to economic growth and signalled easy money policies could stay if necessary.
Wall Street rose on strong earnings by Facebook and data showed first-time claims for unemployment benefits fell to a 48-year low.
As expected, the ECB made no changes to its ultra-low interest rates and its bond-buying stimulus programme, which is slated to end in March.
However, European Central Bank chief Mario Draghi warned Thursday of storm clouds on the horizon for the eurozone as fears mount of a global trade war.
“The head of the ECB mentioned the slowdown in economic momentum in the eurozone, and this spooked some currency traders,” said market analyst David Madden at CMC Markets UK.
“As always, Mr Draghi gave himself some wiggle room, but stating the monetary easing policy would stay in place if it was necessary.”
That sent the euro moving lower to a level unseen since mid-January.
The lower euro helped eurozone equity markets pick up.
Frankfurt finished the day with a gain of 0.6 percent and Paris rose 0.6 percent.
Outside the eurozone, London rose 0.5 percent.
Wall Street’s main stock indices were higher approaching midday, with the Dow rising 0.7 percent, supported by a batch of mostly good earnings from Facebook and others.
But Facebook’s results, released after the market closed on Wednesday, won strong reviews after the company reported a 63 percent rise in first-quarter profits to $5 billion, undented by a consumer data scandal.
Facebook’s shares shot more than 9 percent higher.
European markets also had plenty of earnings news to digest.
Shares in British bank Barclays shed 1.4 percent after revealing that it had dived into a first-quarter net loss following a huge US fine over its conduct in the run-up to the global financial crisis.
Germany’s Deutsche Bank slid 1.3 percent in Frankfurt after reporting falling profits for the first quarter and announced deep cuts to its flagship investment banking division.
Lufthansa meanwhile slumped 5.5 percent on news of weaker revenues, even as the airline giant said it pared losses in the first quarter.
But auto behemoth Volkswagen revved 2.6 percent higher despite a drop in quarterly net profits in saying strong sales had got 2018 off to “a good start”.
– Key figures around 1530 GMT –
New York – Dow: UP 0.7 percent at 24,263.18 points
London – FTSE 100: UP 0.5 percent at 7,418.07 (close)
Frankfurt – DAX 30: UP 0.6 percent at 12,500.47 (close)
Paris – CAC 40: UP 0.7 percent at 5,453.58 (close)
EURO STOXX 50: UP 0.6 percent at 3,506.86
Tokyo – Nikkei 225: UP 0.5 percent at 22,319.61 (close)
Hong Kong – Hang Seng: DOWN 1.1 percent at 30,007.68 (close)
Shanghai – Composite: DOWN 1.4 percent at 3,075.03 (close)
Euro/dollar: DOWN at $1.2104 from $1.2161 at 2100 GMT
Dollar/yen: DOWN at 109.36 yen from 109.43
Pound/dollar: DOWN at $1.3923 from $1.3932
Oil – Brent North Sea: UP 65 cents at $74.65 per barrel
Oil – West Texas Intermediate: UP 18 cents at $68.23
Source: Brecorder
