European stock markets have had their foot on the gas for three days straight, and for good reason. Anticipation of new measures to avoid a contagion of the peripheral debt crisis came to light on Tuesday (for example, a boost to the European recovery fund or lowering of interest rates by the European Central Bank) and were sufficient to spawn a rally of the banking sector. The rally extended to all European markets.
The Ibex 35, although it spiked less than others across the continent, bounded back by 4.03% to settle at 8,531 points. This was its third highest jump of the year.
Still, hopes that the leading European organizations will strengthen their support for Greece has been an incentive for the banks, who are celebrating rising stock prices that are making up ground for losses experienced in the past couple of days.
It was a treat to watch leading companies carry stocks higher across the European indexes. The most bullish was the main French stock index, the Cac, where the banking sector led gains until the index recorded a 5.74% increase on the day. This was an annual record and a daily jump not seen since November of 2008.
French banks also drove the EuroStoxx50, with Société Générale and BNP Paribas acting as the main players. Their gains were greater than 15% and drove the EuroStoxx50 index upward by more than 5%. Besides the French banks, German titan Deutsche Bank also rose more than 10%.
