From a sharp turnaround at the start of the week, stock exchange traded funds are rallying Friday in anticipation of additional monetary interventions to help stabilize Eurozone’s financial troubles.
The SPDR S&P 500 (NYSEArca: SPY) increased 2.0% and the SPDR Doe Jones Industrial Average (NYSEArca: DIA) rose 1.7% at last check Friday.
The Dow Jones Industrial Average is now on track for its largest weekly gain since January, reports Rita Nazareth for Bloomberg.
Global equities rebounded as German Chancellor Angela Merkel and French President Francois Hollande stated that they were “bound by the deepest duty” to maintain the euro and to do “everything” necessary. Meanwhile, the ECB was set to buy bonds to help lower rates.
“There’s been a lot of rhetoric as far as opening up the checkbook for whatever needs to be done to stabilize the euroland,” Michael Mullaney, chief investment officer at Fiduciary Trust, said in the article. “It’s a giant deal if they actually do what they say they are prepared to do. They’ve got to go and do what the Fed did. They’ve got to buy bonds.”
European stocks were also gaining on the easing plans. The EURO STOXX 50 Price EUR Index was up 2.2%, and the Vanguard MSCI Europe ETF (NYSEArca: VGK) was 2.5% higher Friday.