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Shares hit week low after ECB cuts rate

London Stock ExchangeThur: Shares in London fell to their week low after the European Central Bank’s latest measures fell short of analysts’ expectations.

The  FTSE 100 closed 2.27% weaker or 145.9pts to 6,275, while markets in the eurozone were down about 3%.

The ECB cut a key rate and extended its monthly asset purchases, but the cut was marginally smaller than the market had anticipated. Furthermore, the extension of QE by €60bn a month rather than €75bn also left traders disappointed.

The euro surged 2.36% against the dollar to $1.0865.

In corporate news, shares in Sports Direct fell 5.4% following a broker downgrade.

Investment management firm Brewin Dolphin Holdings jumped after reporting substantial statutory profit growth for the year as the company focuses on expansion.

Whitbread was among the few gainers, ending the day 0.3% higher following a target price upgrade.

Meggitt was in the black, bouncing back from recent losses as it emerged the aerospace and defence firm has been relegated to the FTSE 250 following the latest FTSE quarterly review.

 

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