Hahaha, so more hopes of stimulus is what is creating this rally, Draghi mentions the word stimulus and markets take off, fucking amazing, I cant wait for the day when every one realizes that all this stimulus has done more harm than good, the amount of cheering that goes on from every central bank releasing stimulus to prop up their economy and markets is a complete joke.
Europe accelerates to close sharply higher on Draghi
CNBC.com staff |
@cnbc
1 Hour AgoCNBC.com
66
SHARES
9
COMMENTS
Euro tests low last seen at its birth in 1999
The pan-European
FTSEurofirst 300 ended by 2.9 percent higher at 1,368.85, with all major sectors and bourses rallying after the letter. The
CAC and the German
DAX both rallied to provisionally close around 3.5 percent higher. London's
FTSE 100 ended around 2.4 percent higher.
U.S. stocks also surged on Thursday, extending the prior day's robust gains, as the price of oil steadied and on thinking the Federal Reserve and the European Central Bank would buttress the global economy.
Comments late Wednesday by Fed Bank of Chicago President Charles Evans helped the bullish slant, with Evans saying he did not believe the central bank should be in a rush to hike interest rates.
ECB stimulus ahead?
Dursun Aydemir | Anadolu Agency | Getty Images
Aside from individual stocks news, sentiment was boosted by data from the euro zone on Wednesday that showed the region's
inflation rate fell into negative territory for the first time since 2009. The figures add more pressure on the ECB to launch a U.S. Federal-Reserve-style bond-buying program.
There has been resistance to any such a quantitative easing program from countries like Germany, however, and markets are now awaiting the outcome of the ECB's meeting on January 22 to see what the central bank will do. Aggressive stimulus could increase the search for yield and boost riskier assets like stocks—as such, the weak inflation data is being seen as positive by market participants.
On the data front, a euro area business confidence index for December fell to 0.04 versus a reading of 0.17 in November. Also, German factory orders on Thursday morning showed a sharp monthly fall in November, with new orders down 2.4 percent.
In the U.K., the Bank of England held interest rates at a record low as expected on Thursday. The central bank kept its benchmark base rate at 0.5 percent, where it has been since March 2009, and maintained its asset purchase target at £375 billion ($564 billion).
