European markets saw a huge rally today, with rumours about bank recapitalizations renewing hopes that bank recapitalizations could be at hand.
CAC 40: 4.25%
FTSE 100: 3.10%
Those rumours surfaced yesterday, when EU economy minister Olli Rehn told the FT, “we need a concerted, co-ordinated approach in Europe.” The article also suggested that finance ministers had been discussing a plan to do just that at a meeting yesterday in Luxembourg.
These gains also came ahead of an ECB monetary policy decision, scheduled to be released at 7:45 AM EST tomorrow.
Oddly, the day ended with a bomb threat on the old building of the Frankfurt Stock Exchange, home of the Deutsche Boerse.