European stocks closed higher on average Thursday after the European Central Bank (ECB) announced a massive new bond-buying program Thursday and the United States offered hints that it would ease tariffs against Chinese imports.
By the close of play, the European Stoxx 600 had risen by two tenths of one percent.
The ECB’s quantitative easing program will entail 20 billion euros per month of asset purchases for as long as it deems necessary. President Mario Draghi also announced that the central bank would cut its main deposit rate by 10 basis points to -0.5%, in line with expectations.
Stocks also received a boost Wednesday after President Donald Trump announced a two-week delay to the increased tariffs on $250 billion worth of Chinese imports expected on October 1. Trump said pushing the imposition of the duties back to October 15 was intended as a “gesture of good will” as the world’s two largest economies continue a two-year long trade war.
Back in Europe, Brexit remains in focus despite the suspension of the U.K. Parliament. The British government bowed to pressure to publish its plans for a no-deal Brexit on Wednesday night, revealing warnings of severe disruption to cross-Channel routes which would impact the supply of medicines and certain types of fresh foods.
The “Operation Yellowhammer” paper also anticipates protests and counter-protests, and a possible rise in public disorder.
