- The ECB opted on Thursday to leave its Pandemic Emergency Purchase Program, or PEPP, unchanged, at a total of 1.85 trillion euros ($2.21 trillion) due to last until March 2022.
- However, with purchases having been lower than usual in the first quarter, the central bank vowed to up the ante over the next few months.
- European earnings came from Generali, Hugo Boss, Rolls-Royce, WPP, Morrisons and John Lewis Partnership.
LONDON — European stocks closed higher Thursday as the European Central Bank vowed to increase its bond buying amid rising borrowing costs on the continent.
The pan-European Stoxx 600 closed up 0.5%, with tech stocks jumping 2.3% and banks falling 1.6%.
Following its latest monetary policy meeting, the ECB said it expects to increase its bond purchases "significantly" next quarter, after borrowing costs rose in the region.
ECB in focus
The ECB opted on Thursday to leave its Pandemic Emergency Purchase Program, or PEPP, unchanged, at a total of 1.85 trillion euros ($2.21 trillion) due to last until March 2022. However, with purchases having been lower than usual in the first quarter, the central bank vowed to up the ante over the next few months.
Paul Diggie, senior economist at Aberdeen Standard Investments, said the markets had got what they wanted from the ECB, which will please policymakers as well.
"Both bond and equity markets were looking for the ECB to push back on the recent increase in European yields, which were looking like an unhelpful spill over of stronger growth prospects in the U.S.," Diggie said.
"By promising to increase the weekly run-rate of asset purchases under its QE program for the next quarter or so, the ECB did exactly that – literally putting its money where its mouth is."
