Overseas Trading: BoE Boosts Europe With Rate Cut, More Stimulus

The Bank of England (BoE) cut its key interest rate for the first time in seven years and expanded its stimulus program

Aug 4, 2016 at 8:27 AM
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An overnight bounce in oil prices served as a boon for Asian stocks. Despite comments from Bank of Japan (BoJ) Deputy Governor Kikuo Iwata -- who sounded uncommitted to further stimulus measures -- Japan's Nikkei jumped 1.1% on the back of yen weakness.

Elsewhere, China's Shanghai Composite came back from early losses to end 0.1% higher, amid hopes of further stimulus measures. Meanwhile, a strong post-earnings performance from bank stocks HSBC and Standard Chartered helped Hong Kong's Hang Seng tack on 0.4%, while South Korea's Kospi popped 0.3%.

European markets are sizzling, after the Bank of England (BoE) lowered its benchmark interest rate for the first time since March 2009 -- to a record low of 0.25% -- and expanded its stimulus program to $579 billion. As a result, the yield on the U.K.'s 10-year bond, or gilt, fell to a record low. Currently, London's FTSE 100 is 1.5% higher, the French CAC 40 has added 0.7%, and Germany's DAX is up 1% -- with engineering firm Siemens rallying after earnings, while drugmaker Merck and network equipment provider Nokia are lower post-earnings.

overseas trading august 4

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