Euro Drops Below $1.10 First Time Since 2003 Amid ECB Stimulus

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The euro fell below $1.10 for the first time in more than 11 years after European Central Bank President Mario Draghi unveiled details of sovereign-debt purchases designed to increase inflation and restore economic growth.

The shared currency dropped for a sixth day, the longest slide in more than a year, as Draghi said the ECB will start buying bonds next week and include debt with negative yields. The dollar rallied to the highest in more than 10 years as investors awaited a jobs report Friday that may bolster the case for the Federal Reserve to raise interest rates for the first time since 2006.

The euro sank as much as 0.8 percent to $1.0988 before trading at $1.1030 at 5 p.m. in New York, down 0.4 percent. It last fell below $1.10 in September 2003. The 19-nation currency was little changed at 132.50 yen.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major counterparts, gained 0.5 percent to 1,185.15, its highest close in data going back to 2004.

The ECB will begin buying bonds on March 9, Draghi told reporters in Nicosia, Cyprus, after a policy meeting. He confirmed that purchases will amount to 60 billion euros ($66 billion) each month and run through September 2016.

Source: Bloomberg

Gold Goes Back to Boring as Volatility Drops to Four-Month Low

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The metal’s 30-day historical volatility dropped to the lowest since early November on Thursday, according to data compiled by Bloomberg. Even Mario Draghi’s plan for more bond buying that sent the euro to an 11-year low against the dollar wasn’t enough to spur some movement for gold, with futures trading little changed for most of the day in New York.

Prices are up 1 percent in 2015, paring gains of as much as 10 percent through mid-January. Gold fell 1.5 percent in 2014, and in the past year the metal is the least-volatile of the 22 components tracked by the Bloomberg Commodity Index. The U.S. Labor Department will release jobs data on March 6 that may show more improvement for the economy, allowing the Federal Reserve to raise interest rates sooner.

Gold futures for April delivery slipped 0.4 percent to settle at $1,196.20 at 1:46 p.m. on the Comex in New York. Trading was about 11 percent lower than the 100-day average for the time of day, data compiled by Bloomberg show.

Source : Bloomberg

U.S. Stocks Rise Amid Corporate Mergers Before Feb Jobs Report

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U.S. stocks rose, after equities posted their biggest two-day slump in more than a month, amid corporate deals before Friday’s government jobs report.

Pharmacyclics Inc. surged 10 percent after AbbVie Inc. agreed to buy the drugmaker in a $21 billion deal. Mallinckrodt Plc climbed 4.8 percent after buying closely-held Ikaria Inc. for about $2.3 billion.

The Standard & Poor’s 500 Index added 0.1 percent to 2,101.09 at 4 p.m. in New York.

European Central Bank President Mario Draghi primed investors to be ready for the central bank’s first bond-buying salvo as he signaled officials are convinced the measure will succeed in the choking off the threat of deflation.

Source: Bloomberg

U.S. Stocks Advance; Europe Shares Rise, Euro Declines on ECB

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U.S. stocks rose amid corporate dealmaking, while European equities advanced and the euro weakened to an 11-year low as the region’s central bank unveiled details of its debt-purchase plan.

The Standard & Poor’s 500 Index advanced 0.2 percent at 12:13 p.m. in New York, halting a two-day slide. Pharmacyclics Inc. surged 11 percent after AbbVie Inc. agreed to buy the drugmaker in a $21 billion deal. The Stoxx Europe 600 Index added 0.8 percent. The euro depreciated below $1.10 for the first time since September 2003. Portugal’s 10-year yield declined nine basis points to 1.79 percent. Treasuries were little changed amid mixed U.S. economic data. Chinese equities slid as Asia’s biggest economy cut its growth target.

The ECB raised its outlook for growth 2016 and President Mario Draghi committed to begin asset purchases next week that will amount to 60 billion euros ($66 billion) a month as the central bank institutes quantitative easing to choke off the threat of deflation. U.S. data showed the number of Americans filing for unemployment benefits rose to the highest level in nine months before a government jobs report Friday.

Source : Bloomberg

Europe Stocks Rise as Draghi Says Bond-Buying to Begin Next Week

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European stocks advanced for a second day, pushing the Stoxx Europe 600 Index to its highest level since July 2007, as the European Central Bank committed to begin asset purchases on March 9.

The Stoxx 600 rose 0.8 percent to 393.78 at the close of trading. The gauge has rallied 15 percent this year after the ECB said it would start a quantitative-easing program. At the same time, economic data are topping forecasts by the most in two years, according to Citigroup Inc.’s Surprise Index.

The ECB kept interest rates unchanged at record lows today. The central bank will begin asset purchases next week, including some debt with negative yields, amounting to 60 billion euros ($66 billion) a month, President Mario Draghi told reporters in Nicosia, Cyprus. He also unveiled forecasts showing higher economic growth with an inflation outlook that puts the ECB on track to reach its goal of just below 2 percent in 2017.

Germany’s DAX Index rose 1 percent to a record close. Portugal’s PSI 20 Index jumped 1.7 percent, for the best performance of 18 western-European markets. The volume of Stoxx 600 shares changing hands was 8.7 percent lower than the 30-day average.

Source: Bloomberg