Home ›› 06 Nov 2021 ›› Stock
Global stock markets mostly rose on Thursday, with US tech stocks again hitting new highs a day after the Federal Reserve said it would start “tapering” its pandemic support program.
Meanwhile, the Bank of England opted to keep its gunpowder dry on possible policy moves for now, confounding many market players who had been betting on an interest rate hike and sending the pound lower against the dollar.
The BoE left benchmark borrowing costs at the current low of 0.1 percent and kept its bond-buying stimulus program unchanged.
The decision “will come as a surprise to some in markets,” said Berenberg economist Kallum Pickering. But it was “the correct decision.”
“By keeping rates on hold, the BoE will force markets to reconsider the likely path of rates over the coming years,” he said.
Stock prices in London pushed higher after the announcement.
The BoE move was in contrast to the US Federal Reserve decision on Wednesday to start slowing the monthly pace of stimulus bond purchases, cutting $10 billion in Treasuries and $5 billion in mortgage-backed securities every month.
That announcement fueled another record rally on Wall Street and bumper gains across Asia and Europe.
The good cheer continued on Thursday, with Frankfurt closed above 16,000 points for the first time and Paris set a record close for the third day running.
