Global stocks rally on ‘dovish’ ECB hike, First Republic relief package

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Global stocks rally on ‘dovish’ ECB hike, First Republic relief package
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Wall Street rallied after a consortium of US private banks announced a $30-billion rescue package for First Republic, while European stocks jumped on a European Central Bank’s interest rate decision that was called a “dovish hike.” | AFP

Major US indices, which had opened the day in the red, also pushed into positive territory, with the S&P 500 finishing up 1.8 percent.

But the central bank raised its main rates by half a percentage point, as it had previously pledged to do. Dovish in monetary policy means favoring lower interest rates to maximise growth and employment, rather than pursuing a “hawkish” policy focused on raising interest rates to reduce inflation. Other European banking giants including BNP Paribas and Commerzbank were also in the green, though Societe Generale and Deutsche Bank fell.

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