ECB Reaffirmed Easing Commitment, Outlook Unchanged

Nigel Thomas
03 Jun, 2015
New York City

ECB reassured its commitment to bond purchase program and said outlook is unchanged from March and admonished markets to get used to higher volatility. Accor plans to invest

[R]4:00 PM Frankfurt – ECB reassured its commitment to bond purchase program and said outlook is unchanged from March and admonished markets to get used to higher volatility. Accor plans to invest €22 million in an online hotel marketplace. Voestalpine annual net rose 18% to €594.2 million.[/R]

Market indexes in Europe advanced after the European Central Bank chief Mario Draghi reaffirmed the bank’s commitment in completing the 1.1 trillion euro bond purchase program.

Draghi at a press conference after the meeting of policy makers said that the economy is slowly healing and the inflation is building and price increases are still within the target set by the central bank.

Draghi insisted that markets must get used to higher volatility and said “the recovery is on track exactly according to our projection.”

Inflation in the euro zone accelerate to 0.3% in May, first positive reading in six months and core rate, excluding volatile food and energy prices, increased 0.9%, the fastest rate in nine months.

After the announcement, the German 10-year bund yield jumped to the highest this year at 0.8871%.

In London trading, FTSE 100 index jumped 0.7% or 47.42 to 6,975.44 and in Frankfurt the DAX index climbed 0.8% or 81.88 to 11,418.08.

In Paris, CAC 40 index gained 0.5% or 26.52 to 5,031.75.

Accor SA increased 0.5% to €50.47 after the France-based hotelier plans to invest €22 million to enable independent hoteliers to offer their rooms on its booking website and build an online marketplace.

Alternative Networks Plc gained 0.7% to 535 pence after the U.K.-based information technology company said revenues in the first-half ending in March soared 17% to £73.97 million from £62.99 million in a year ago period.

Profit in the year surged 26.8% from a year ago to £4.5 million compared to £3.6 million and diluted earnings per share jumped to 9.3 pence from 7.4 pence.

Dixons Carphone Plc slipped 1.3% to 473.20 pence after the electrical and telecommunications retailer forecasted revenues for the fourth-quarter to jump 9% and for the year to climb 6% and said pre-tax profit will be slightly above the earlier estimated range between £355 million and £375 million.

Globo Plc climbed 5.1% to 58.34 pence after the U.K.-based mobile application developer stated group revenues in the first-quarter ending in March climbed 36% to £23.7 million from a year ago period.

Operating profit in the quarter jumped 33% to 33% to €13.4 million from €10.1 million in a year ago period.

The company added revenues in the quarter from GO!Enterprise segment soared 108% to £13.3 million and revenues form CitronGO business rose 2% to £8.9 million from a year ago period

Net cash position in the quarter increased to €41.2 million from €40.4 million in December quarter.

Voestalpine AG soared 5.5% to €40.47 after the Austria-based flat steel products maker reported revenues in the year ending in March rose 1% to €11.19 billion from €11.08 in a year ago period.

Net profit in the year climbed 18% from a year ago to €594.2 million compared to €503.4 million and diluted earnings per share increased to €3.11 from €2.59.

Voestalpine forecasted net income in the first-quarter of about €90 million and said that the estimate includes revaluation of assets at fair value because of full consolidation of companies.

Ryanair Holdings Plc jumped 1.4% to €11.71 after the Ireland-based low-cost airline company said traffic in May surged 16% to 9.5 million passengers from 8.2 million passengers and load factor climbed to 92% from 85% in the same month a year ago.