European Shares Boosted by ECB Stimulus Expectation

European shares rose on Wednesday, bolstered by hopes for more stimulus from the European Central Bank and upbeat U.S. economic data that calmed anxiety over a deteriorating global outlook.

The Australian dollar hit a four-year low against its U.S. counterpart before U.S. data likely to prove crucial for this week’s recovery of several currencies against the dollar.

Euro zone government bonds and shares gained after ECB Vice President Vitor Constancio said on Wednesday the bank might decide in the first quarter of 2015 whether to buy sovereign bonds. His comments were the clearest indication yet of the timing of any purchases.

 
The pan-European FTSEurofirst index .FTEU3 was up 0.3 percent at 1,392.94. It has been rising daily since Friday, when ECB President Mario Draghi spoke on the likelihood of more stimulus and China cut interest rates.

Germany’s DAX index .GDAXI rose for the 10th straight day, its longest winning streak since May 2013.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza