Europe Goes Bonkers After EU Leaders Agree To Bank Recapitalization Master Plan

crowd, cheering, cheer, crazy, energy, excited, gov ball, Governors Ball 2012, Randall's Island, NYC, New York City, Festivals, Music, Live Performance, BI, DNG

Photo: Daniel Goodman / Business Insider

Markets are shooting higher after announcements from Brussels indicating that Europe’s bailout funds will now lead bank recapitalizations that will not add to the size of national governments’ debt.Take a look at these numbers:

DAX: 2.51%
CAC 40: 2.33%
FTSE 100: 1.20%
IBEX 35: 3.16%
FTSE MIB: 2.98%

These gains are being led by financial stocks.

European leaders also agreed to establish a supervisory body that would oversee the European banking system. “We affirm that it is imperative to break the vicious circle between banks and sovereigns,” leaders wrote in a statement published after 13 hours of talks.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at