LONDON MARKETS: FTSE 100 Climbs Alongside European Markets On ECB QE Comments

By Caixin Online

U.K. stocks leapt Tuesday, pushed higher alongside other European equity markets after comments about the European Central Bank's quantitative-easing program by key bank officials.

The FTSE 100 climbed 0.5% to 7,001.91.

Stocks leapt after the release of text from a speech that Benoît Coeuré, a European Central Bank Executive Board member, delivered in London on Monday. Coeuré said because of low liquidity levels usually seen during the summer period, the ECB will modestly raise purchases (http://www.marketwatch.com/story/euro-falls-after-ecbs-coeure-says-bank-will-front-load-qe-buying-2015-05-19) of euro-area assets in May and June. Such action "will allow us to maintain our monthly average of EUR60 billion, while having to buy less in the holiday period," he said in the speech (https://www.ecb.europa.eu/press/key/date/2015/html/sp150519.en.html), published Tuesday.

And on Tuesday, ECB governing council member Christian Noyer said the European Central Bank is ready to take additional steps (http://www.marketwatch.com/story/noyer-ecb-will-act-if-inflation-target-isnt-met-2015-05-19) to boost inflation if its current quantitative-easing program proves insufficient.

European and U.K. equities have this year been pushed to record highs, fueled by funding surrounding the EUR1.1 trillion bond-buying program launched in March.

The euro (EURUSD) slid after Coeuré's comments. Against the pound (EURGBP), it was buying 71.51 pence, down from 72.29 pence late Monday.

On the FTSE 100, Vodafone PLC shares dropped 2.6%. The mobile network telecom heavyweight said full-year operating profit adjusted for exceptional items -- a key performance metric -- fell 19% to GBP3.51 billion as the company invested in its network (http://www.marketwatch.com/story/vodafone-hails-signs-of-stabilization-in-europe-2015-05-19-24854139). Revenue rose 10.1%, but excluding handset sales, it fell 1.6%.

   Mining shares were also at the bottom of the FTSE 100, with BHP Billiton PLC (BHP)   down 2.2%. 
 

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