(Bloomberg) The Stoxx Europe 600 rose almost 1% on Wednesday as most other indexes gained amid speculations that ECB’s emergency meeting would address selloffs.
The European Central Bank announced an emergency meeting on Wednesday in which officials are set to discuss the current market conditions.
Italy’s FTSE MIB index rose 2.3%, with the country’s bonds also rising. The euro surged by more than 0.65%.
Markets are warming up to ECB details on how the officials plan to keep the bond yields among the most vulnerable members in check. This comes after yields on Italy’s 10-year debt surpassed 4% this week, the first time since 2014.
The latest surge in equities came after European stocks came crashing last week after the central bank committed to hiking rates by a quarter-point next month. Markets were expecting a more aggressive stance as inflation continued to surge.
Sarah Hewin, head of Europe and Americas research at Standard Chartered Plc, says ECB may just offer more details regarding the PEPP re-investments. She says if the central bank goes that route rather than announcing a new program, markets would be disappointed.
EURUSD is up +0.69%, DAX is up +1.45%.
