Europe Closes Higher on ECB, BoE GuidanceCNBC | July 04, 2013 | 11:56 AM EDTEuropean shares rallied to post their biggest one-day jump in 10 weeks on Thursday, after the Bank of England (BoE) and the European Central Bank (ECB) both gave guidance for the first time on the path for future monetary policy.The pan-European FTSEurofirst 300 Index [ .FTEU3-GB 1178.99 +28.09 (+2.44%) ] provisionally closed up 2.4 percent at 1,178.42 (its biggest rise since April), after both central banks kept benchmark rates unchanged at a record low of 0.5 percent, but indicated that monetary policy would continue to be accommodative.The Bank of England said that if bond yields rose that would weigh on its outlook for growth and suggested that fears among investors of a tightening in policy were not warranted.ECB President Mario Draghi also provided forward guidance on the future of monetary policy. Draghi explicitly pledged to keep key interest rates at current levels or lower for "an extended period of time." The decision was supported unanimously by the ECB.Both sterling [ GBP= 1.5063 -0.0007 (-0.05%) ] and euro [ EUR= 1.2908 -0.0005 (-0.04%) ] fell sharply against the dollar.(Read More: BoE Holds Fire as Carney Reign Begins )
Posted on: Thu, 04 Jul 2013 22:43:19 +0000
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