U.S. and European stock prices rose on Thursday as the European Central Bank (ECB) decided to keep its bond emergency program unchanged and US President Joe Biden signed a $ 1.9 trillion economic support plan.
Biden hopes to realize its key points as soon as possible, including providing up to $ 1,400 in financial support to most Americans, expanding unemployment support, increasing resources for opening schools quickly, and supporting businesses and communities hit hard by the new coronavirus pandemic.
Wall Street’s Dow Jones Industrial Average and Standard & Poor’s 500 rose to new highs, as did the Nasdaq Composite Index.
The Frankfurt Stock Exchange index reached a new record, while the Paris Stock Exchange index rose to a one-year high. The London Stock Exchange index also rose.
Some economists fear that the generosity of the US federal government will be the catalyst for a large jump in inflation, which could force the Federal Reserve System (FRS) to suddenly change its policy.
Jerry Rice, a spokesman for the International Monetary Fund (IMF), said US spending would also have a positive impact on the global economy as demand grew.
At the Governing Council of the ECB in Frankfurt, it was decided to keep the key interest rate at 0%. The ECB also decided to maintain the EUR 1.85 trillion bond redemption program unchanged. The size of the program was increased in December in response to the ECB’s economic shock to the coronavir pandemic.
Oil prices rose after OPEC lowered its demand forecast for the first half of the year, but slightly raised its forecast for the whole year.
The Dow Jones Industrial Average rose 0.6% to 32,485.59 points on Thursday, the Standard & Poor’s 500 rose 1.0% to 3,939.34 points, and the Nasdaq Composite index rose 2.5% to 13,398.67 points.
The London Stock Exchange index FTSE 100 rose 0.2% to 6736.96 points on Thursday, the Frankfurt stock exchange index DAX 30 rose 0.2% to 14,569.39 points, while the Paris stock exchange index CAC 40 rose 0.7% to 6033 .76 points.
In the New York Stock Exchange, the price of WTI crude oil rose 2.3% to $ 65.91 a barrel on Thursday. The price of Brent crude rose 2.4% to $ 69.56 a barrel on the London Stock Exchange.
The euro rose against the US dollar from 1.1932 to 1.1982 dollars per euro on Thursday, the British pound against the US dollar rose from 1.3928 to 1.3984 dollars per pound, and the US dollar against the Japanese yen rose from 108.38 to 108.53 yen per dollar. The euro appreciated against the pound sterling from 85.60 to 85.66 pence per euro.
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