Berenberg says Fed will start cutting bond-buying support programme

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Berenberg says Fed will start cutting bond-buying support programme

The Federal Reserve said that it would start tapering its pandemic support programme on Thursday, with US tech stocks hitting a new high on Thursday.

In the meanwhile, the Bank of England went to keep its gunpowder dry for now as a result of a increase in interest rate increase and lowering the pound against the dollar.

The bond-buying stimulus programme was unchanged after it left its benchmark borrowing costs at the current low of 0.1 percent.

A decision will be a surprise for some in the markets, said Berenberg economist Kallum Pickering.

He said that it was the right decision. The BoE will force markets to reconsider the likely path of rates over the next few years. The price of stock in London went up after the announcement.

The BoE's move contrasted with the move of the US Federal Reserve on Wednesday, when it stated it would reduce the monthly pace of quantitative easing purchases by $10 billion 8.7 billion euro for Treasuries and $5 billion for mortgage-backed securities.

The announcement led to another record rally on Wall Street and bumper gains across Asia and Europe on Thursday. Frankfurt closed above 16,000 points for the first time, and Paris set a record close for the third day running.

Wall Street was mixed in the midday trading on Thursday, with the Dow down by 0.3 percent.

The tech-heavy Nasdaq rose by 0.6 percent to strike a new intraday record.

The Fed's stimulus programme gives US tech companies a lot of money from the money injected into the markets.

The Fed's indication that it is in no rush to raise interest rates helped boost sentiment due to the slow tapering of stimulus funds and the Fed's indication that it is in no rush to raise interest rates.

The Fed's plan for the bond-buying programme kept traders concerned that officials are leaving it too late to respond to rocketing inflation, as a result of the announcement, as traders were concerned that officials were leaving it too late to respond to rocketing inflation.

The Fed is the newest monetary authority - after central banks in Canada and South Korea - to begin winding back measures put in place at the start of the pandemic that have been important to the global rebound and a 18 month equity rally to multi-year or record highs.

In the same time, supply bottlenecks and shortages have caused global consumer prices to rise, causing criticism that the Fed and other central banks have become overly complacent about inflation risks.

There was little relief for concern about high oil prices when OPEC and its allies decided on Thursday to make only a planned modest increase in production despite appeals from consumer-nations to boost production.

The decision gave up their gains, but remained above $60 per barrel.

New York - Dow: DOWN - 0,3 percent, at 36,052. 36 points

The euro dollar was doWN at $1.1546 on Wednesday from $1.1612 at 2100 GMT Wednesday.

The dollar: DOWN at 113.74 from 114.01 yen

The euro pound increased by 85.50 pence from 84.83 pence.

Brent North Sea crude: up 0.1 percent at $82.09 per barrel

West Texas Intermediate: DOWN 0,3 percent at $80.64 per barrel