European shares rally on ECB, DAX hits all-time high

jueves 5 de junio de 2014 10:07 GYT
 

* Euro STOXX up 1.1 pct after setting 6-yr high

* Germany's Dax at all-time peak

* Banks, southern bourses lead rally

By Francesco Canepa

LONDON, June 5 (Reuters) - Euro zone shares rallied on Thursday, led by banks and peripheral indexes, as the European Central Bank unveiled a string of measures to fight low inflation and boost the euro zone economy.

The announcement lifted the German blue-chip DAX index to an all-time high of 10,013.69, before it ticked back down to 9,967.01, an overall increase of 0.4 percent on the day.

The euro zone Euro STOXX index rose 1.1 percent, setting a six-year high at 333.80, with the blue-chip Europe STOXX50 up 1.2 percent.

The ECB cut rates, effectively charging banks to deposit cash at the central bank, and outlined a four-year 400 billion euro ($544.86 billion) scheme aimed at stimulating credit at a time when banks face tough scrutiny of their asset quality.

"This is very positive for equities because implicit in the announcement is that rates are going to be low for a very long time," said Manish Singh, director and head of investment services at Crossbridge Capital.   Continuación...