European Markets Surge On Bank Recapitalization rumours


European markets saw a huge rally today, with rumours about bank recapitalizations renewing hopes that bank recapitalizations could be at hand.

DAX: 4.73%

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.

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