Exchange traded funds have bounced late this week on signs Greece will shelve a planned referendum on the financial rescue. A interest-rate cut by the European Central Bank has also helped fuel the rally.
The Stoxx Europe 600 Index ended up 2.1% Thursday, with all major European indices showing gains, reports WSJ.com.
European markets ended higher after Greek Prime Minister George Papandreou recanted his proposed referendum vote on the new bailout package. Additionally, equities were given an extra boost after the ECB announced a surprise a 0.25% rate cut to 1.25%. [Stock ETFs Breathe Easier After Greece Referendum Shelved]
“[ECB president Mario Draghi] put much more emphasis on growth, mentioning manufacturing surveys, growth-forecast downgrades and financial conditions to explain his quarter-point rate cut. This suggests another rate cut in a month’s time,” Trevor Greetham, director of asset allocation at Fidelity Worldwide Investment, said in the WSJ article.