EU stocks surge for a second day amid banks bounce
EU stock markets soared for a second session on Monday. Bank shares lead the charge higher right after news that the ECB may purchase Italian bad loans.
Global financial markets also driven by a positive trading day in Asia, when Japanese Nikkei grew 7.2% after Friday’s close at the lowest value since October 2014.
The Stoxx Europe 600 index went up 2.6%, approaching to 320.52. The index found itself on track for its week’s highest close.
Banks appeared to be among the greatest advances. For instance, the region’s banking index soared 3.4%. As mentioned above, the rally took place after the breaking news that ECB is currently negotiating with the Italian government regarding buying bad loans from the country’s banks following the asset-purchasing scheme. Those loans are going to be accepted collateral.
Italian banks, which were among the worst performers in the niche during this year’s sell-off also surged following the support. Stocks of Unipol Gruppo Finanziario SpA grew 7.3%, while Banco Popolare SC acquired 6.8%. As for Banca Monte dei Paschi di Siena SpA and Banca Popolare di Milano Scarl they gained 6% and 6.2% respectively.