Debt crisis: ECB intervention hopes drive markets higher [Telegraph]
July 31, 2012 Leave a comment
European markets rose sharply amid mounting speculation of a dramatic intervention by the European Central Bank to arrest the crisis engulfing the region.
Investors were buoyed as a meeting in Frankfurt between US treasury secretary Timothy Geithner and the Bank’s president Mario Draghi fuelled expectation of imminent policy action.
The IBEX 35 in Spain jumped 2.8pc to 6,801.8, while the DAX in Germany rose 1.3pc to 6,774.06, and the CAC 40 in France closed up 1.2pc at 3,320.71. In London the FTSE 100 rose 1.2pc to 5,693.63.
“Investors continued to gorge themselves on equities as on the prospects of further central bank stimulus in the very near term increased today,” said Angus Campbell, head of market analysis at Capital Spreads.
Jean-Claude Juncker, head of the eurogroup of eurozone finance ministers, added to the sense of urgency by warning the eurozone had reached a “decisive point” and has “no time to lose.”