ECB Rate Cut Boosts Flagging Markets

After a slow start, the equity market welcomed the news that the ECB had cut rates by 0.25%.

Morningstar.co.uk Editors 3 November, 2011 | 5:12PM
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News that Eurozone rates were to drop to 1.25% spurred the Dax and CAC 40 to gains of over 2.5%. The FTSE 100 saw more moderate gains, rising 1.12% to 5,546.

The ECB’s move helped counter gloomy news from the US earlier in the day. The Federal Reserve cut its growth forecast for 2012 by 0.8% to 2.7%. It said that unemployment was likely to remain over 8.5% until the end of the year, but inflation would be under 2% from 2012-2014.

Man Group was one group leading the FTSE 100 higher, after results for the six months to 30 September beat expectations. Man has had a tough year, but said that redemptions from its funds had reduced in October and it had ended the month with $63.6bn under management.

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Morningstar.co.uk Editors  analyse and report on shares, funds, market developments and good investing practice for individual investors and their advisers in the UK.