Euro Falls to 11-Year Low as ECB Expands Bond-Buying; Real Gains

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The euro dropped to an 11-year low as the European Central Bank expanded its bond-buying program to include government bonds, a policy that tends to debase the currency.

The euro fell 2.1 percent to $1.1368 at 3:25 p.m. in New York and touched $1.1363, the weakest level since September 2003. The last time the euro and dollar traded one for one was in 2002.

The shared currency declined 1.7 percent to 134.67 yen and touched 134.29, lowest since Oct. 16. The dollar added 0.4 percent to 118.44 yen.

Source: Bloomberg

Gold Closes Above $1,300 After ECB Announces Stimulus Measures

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Gold futures settled above $1,300 an ounce for the first time since August after the European Central Bank expanded stimulus measures, boosting demand for the metal as a store of value.

Gold futures for February delivery rose 0.5 percent to settle at $1,300.70 an ounce at 1:42 p.m. on the Comex in New York. Aggregate trading was 51 percent more than the 100-day average, according to data compiled by Bloomberg.

Bullion priced in euros jumped to the highest since April 2013, extending the year™s advance to 17 percent.

On the New York Mercantile Exchange, palladium futures for March delivery rose 0.5 percent to $772.30 an ounce. Platinum futures for April delivery rose 0.7 percent to $1,284.80 an ounce.

Source: Bloomberg

Japan Stocks Head for First Weekly Gain in 2015 on ECB Stimulus

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Japanese shares rose, with the Topix index heading for its first weekly gain this year, after European Central Bank President Mario Draghi expanded stimulus.

The Topix advanced 1 percent to 1,403.88 as of 9:01 a.m. in Tokyo, heading for a weekly jump of 2.9 percent as all but one of its 33 industry groups rose. The Nikkei 225 Stock Average added 1.1 percent to 17,516.43, on course for a 3.8 percent increase this week. The yen slid 0.2 percent to 118.71 per dollar.

The ECB pledged to buy government bonds as part of an asset-buying program worth around 1.1 trillion euros ($1.2 trillion). In addition to monthly purchases, the monetary authority also reduced the cost of long-term loans to banks.

Draghi announced an expanded asset-purchase program, including private and public securities, of up to 60 billion euros a month. The buying will continue through September 2016. The announcement came after the ECB kept benchmark rates unchanged at record lows.

Source: Bloomberg

S&P 500 Erases Loss for Year on Earnings, ECB Stimulus Program

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U.S. stocks rallied for a fourth day, erasing losses for the year in the Standard & Poor™s 500 Index, as the European Central Bank unveiled an expanded stimulus plan and banks and transportation companies surged amid better-than-forecast earnings.

KeyCorp led gains among banks after fourth-quarter results topped analyst estimates. Southwest Airlines Co. jumped 8.4 percent as profit rose 71 percent on lower jet fuel prices. Union Pacific Corp. added 4.8 percent as a strengthening U.S. economy and growing construction market boosted traffic on the rails in the fourth quarter. EBay Inc. increased 7.1 percent after entering a standstill agreement with activist investor Carl Icahn.

The S&P 500 gained 1.5 percent to 2,063.31 at 4 p.m. in New York, the highest since Dec. 30. The gauge climbed above its average price for the past 50 days. The Dow Jones Industrial Average climbed 264.36 points, or 1.5 percent, to 17,818.64. The Russell 2000 Index surged 2.1 percent. Trading in S&P 500 companies was 24 percent above the 30-day average for this time of the day.

The Chicago Board Options Exchange Volatility Index, known as the VIX, lost 13 percent, the most since December, to 16.45.

Source: Bloomberg

U.S. Stocks Advance on Earnings as ECB Expands Stimulus Program

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U.S. stocks rose, after a three-day rally in the Standard & Poor™s 500 Index, as regional banks and transportation companies posted better-than-forecast earnings and the European Central Bank unveiled an expanded stimulus plan.

KeyCorp led gains among regional banks after fourth-quarter results topped analyst estimates. Southwest Airlines Co. jumped 6.2 percent as profit rose 71 percent on lower jet fuel prices. Union Pacific Corp. added 4.2 percent as a strengthening U.S. economy and growing construction market boosted traffic on the rails in the fourth quarter. EBay Inc. increased 4.9 percent after entering a standstill agreement with activist investor Carl Icahn.

The S&P 500 gained 0.7 percent to 2,046 at 12:21 p.m. in New York. The gauge climbed back to its average price for the past 50 days. The Dow Jones Industrial Average climbed 113.73 points, or 0.7 percent, to 17,668.01. Trading in S&P 500 companies was 22 percent above the 30-day average for this time of the day.

Draghi announced an expanded asset-purchase program, including private and public securities, of up to 60 billion euros ($69 billion) a month. The buying will continue through September 2016. The announcement came after the ECB kept benchmark rates unchanged at record lows.

Source : Bloomberg