The euro slipped back towards seven-month lows, bond yields fell and European shares rallied on Thursday as talk of aggressive stimulus from the European Central Bank next week gained ground.
The pan-European FTSEurofirst 300 index rose 0.8 percent, adding to Wednesday’s 1.4 percent gain, while the Euro STOXX 50 index was up 1.2 percent.
The firm gains came as Wall Street shares closed flat overnight in a pre-Thanksgiving holiday lull and Asian stocks closed modestly higher. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 percent.
Euro zone central bank officials are considering options such as staggered charges on banks hoarding cash and buying more debt ahead of next week’s ECB meeting, Reuters reported on Wednesday.
That fueled talk that the central bank is getting ready for aggressive measures to lift inflation and economic growth in the 19-member euro zone.
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