European stocks bounce powered by ECB boost
On Friday, EU stocks surged, as market participants positively reacted to the ECB’s surprising stimulus efforts.
The Stoxx Europe 600 traded at 338.67, showing a 1.6% surge.
On Thursday, European shares leapt right after the number one European bank announced its new plans for extra stimulation, including key interest rate cuts. However, financial markets took a steep turn lower, when Mario Draghi, the central bank’s president gave an obvious sign that there’s enough room left to interest rate cuts, and that brought the common currency higher than $1.12.
Currently, market participants are digesting the ECB’s fresh move. Meanwhile, German DAX 30 closed +2.1%, French CAC 40 also showed +2.1%, and the same is true for Spanish IBEX 35 with its 2.1% soar. Italian FTSE MIB acquired 2.8%.
In addition to this, the ECB has already launched several rounds of long-term refinancing operations, dubbed TLTRO, suggesting effective stimulus for banks to borrow. As a result, on Friday, bank shares grew along with stocks of Spanish Banco Popular Español SA and Italian UniCredit SpA .