ECB will act to save euro, says Mario Draghi

The European Central Bank is ready to do “whatever it takes” to support the euro, its president has said.

Mario Draghi’s strong message of support prompted a rally in European share markets and the euro.

They also triggered a fall in bond yields. Spain’s 10-year yield, which had hit a record high of 7.6% earlier, fell back to 7%.

Bond yields are an indication of the interest rate a country would have to pay to borrow money.

A rate above 7% is generally seen as unsustainable in the long run.

Leading stock markets rose, with London’s FTSE 100 share index up more than 1%, Germany’s Dax rising almost 2% and France’s Cac climbing 3%.

 

via BBC

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