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Equity markets higher after surprise BoJ boost

In mid-morning trading the FTSE 100 is up 76 points, at 6539, as the Bank of Japan treats the markets on Halloween to a boost in its stimulus package.

Japan flag
Source: Bloomberg

In London, equities surged higher on the open after a surprise expansion in the stimulus package from the Bank of Japan. The Japanese central bank has taken the quantitative baton from the Federal Reserve and equity traders couldn’t be happier.

The European Central Bank’s ABS purchasing scheme will kick off next month and if that isn’t enough to stimulate the struggling eurozone economy, Ewald Nowotny of the ECB stated that full-blown QE should not be ruled out. Traders have taken note of the ace up the ECB’s sleeve.

Shares in the troubled lender RBS have rocketed this morning after it revealed a third consecutive quarterly profit. The bank's core capital ratio is improving, which will bode well for the rigorous BoE stress test on the horizon. The Scottish bank is standing by its Celtic cousin, Ulster bank, after a sharp improvement in Irish property prices in the past year has pushed the Dublin-headquartered bank into profit.

Direct Line is motoring along after the insurance company announced a 5% decline in quarterly premium sales. The growth in the commercial sector helped soften the blow from the decelerating motor business.

Meanwhile it’s up, up and away for British Airways owner IAG as third-quarter profits soar and the full-year guidance ascends. The next destination for the airline could be dividend–island. 

In the US, we are expecting the Dow Jones to open 190 points higher at 17,385. US index futures are currently at an all-time high thanks to the Land of the Rising Sun raising its stimulus package.

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