Stocks indices slightly up, driven by the BoE decision to introduce stimulus

European stock markets found their way up on Wednesday after the failed recovery attempt the day before. The surprising interest rate cut by the British central bank to mitigate the negative economic impact of the new corona virus fueled the hope of more incentives. It is generally expected that the European Central Bank (ECB) will also provide support measures at the interest rate meeting on Thursday.

The AEX index on Beursplein 5 recorded 1.7 percent in the plus at 492.86 points around noon. The MidKap won 0.7 percent to 735.03 points. The stock market indicators in Frankfurt and Paris rose to 1.7 percent. The main index in Milan improved 0.9 percent.

In London, the FTSE climbed 0.8 percent. The Bank of England (BoE) lowered interest rates by half a percentage point to 0.25 percent, following a special meeting due to the corona virus. The central bank also comes with a new financing plan for small and medium-sized companies. It is the first time since August 2016 that the British have lowered interest rates. Several central banks have already taken action recently.

Aegon Insurance company led the AEX with a profit of 4 percent. Oil and gas group Shell was the only downer with a minus of 1.4 percent. Air France-KLM fell 3.7 percent in the MidKap. KLM is no longer flying to Venice, Milan and Naples due to the virus outbreak. Biotechnology company Pharming fell more than 2 percent at the smaller companies after the departure of financial director Robin Wright.

Adidas fell nearly 5 percent in Frankfurt. The German sportswear manufacturer expects the spread of the corona virus in the important Chinese market to take a bite of 800 million to 1 billion euros from sales in the first quarter.

Oil prices were under pressure after the Saudi state oil company Saudi Aramco announced an increase in production. The move is part of the price war that Saudi Arabia has unleashed on the oil market. A barrel of American oil was 3 percent cheaper at $ 33.32. Brent oil cost 3.1 percent less at $ 36.08 per barrel. The euro remained virtually flat at $ 1.1316.

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