Midday Commentary: Volume subdued post-holiday; ECB rate cut could help foreign preferreds

By Stephanie N. Rotondo

Phoenix, July 5 - Preferred stocks were firming Thursday, though volume was "relatively light," due to many players still being away from their desks, according to a trader.

"Everything is moving up," he said.

The European Central Bank announced Thursday that it had cut its key interest rate to 0.75% in an effort to boost the European economy.

The central bank also said it had lowered the interest rate it pays banks on overnight deposits to zero, an effort designed to spur lending.

If the ECB continues these actions, a trader said, "it should start making foreign preferreds more attractive."

Though there wasn't much of a pop in such names, he said, ING Groep NV was performing well.

The 7.375% perpetual hybrid capital securities (NYSE: IDG) moved up 13 cents in mid-afternoon trading to $24.40, while the 6.375% perpetual hybrid capital securities (NYSE: ISF) gained 9 cents, trading at $21.60 at midday.

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