Europe close: Dovish ECB gives stocks a fillip
By Alexander Bueso
Date: Thursday 14 Apr 2022
(Sharecast News) - European stocks finished the week mostly on an up note as the European Central Bank stuck to a more 'dovish' policy bias than some observers had been expecting.
"The ECB has decided not to follow fashion and has kept its hawks firmly under control," IG chief market analyst, Chris Beauchamp, said.
"[...] This widening policy gap could be the break European markets are looking for, and certainly provides welcome relief from the negativity that has prevailed for most of the month."
The pan-European Stoxx 600 index was up 0.67% to 459.82, alongside a 0.62% gain for the German Dax to 14,163.85 while the FTSE Mib added 0.57% to 24,862.35.
The ECB stayed put on all its key interest rates but did confirm that it would end its asset purchases during the third quarter, although not the exact month.
It was also very clear that the war in Ukraine and its uncertain endgame were critical for the economic outlook and that it would "maintain optionality, gradualism and flexibility in the conduct of monetary policy".
On the war front, Russia's Black Sea flagship and missile cruiser Moskva was attacked and damaged severely by Ukrainian forces, forcing the entire crew to be evacuated.
US President Joe Biden announced another $800m in weaponry for Ukraine on Wednesday, following an hour-long phone call with the country's president, Volodymyr Zelenskyy.
In equity news, Hungary's Wizz Air took off by after saying it further quarter earnings would be better than expected and summer bookings were surging.
Airline shares were up on a read across, with Ryanair, easyJet and IAG all higher.
Italian infrastructure company Atlantia gained after the Benetton family and US private equity firm Blackstone tabled an offer for the Italian road and rail firm.
Shares in Swedish telecoms company Ericsson fell after warning that it expected to be fined by US regulators for its handling of a bribery investigation in Iraq. The company also reported a fall in quarterly earnings following its exit from Russia.
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