The plan Draghi convince the markets. Flywheel European stocks. MIlan + 4.8% – Rai News

Dragons effect on European stocks. The Old Continent markets close sharply higher, with widespread purchases of all sectors but particularly on bank

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11 March 2016 European stocks bounce in the aftermath of the plane-Dragons. Incurred by the banks sprint, main beneficiaries of the various monetary policy measures taken by the ECB with an “overwhelming majority”, in the words of the President, the euro area stock index gained 2.62% (Stoxx 600). pink jersey in Milan (+ 4.80%), followed by Frankfurt (+ 3.5%), Paris (+ 3.2%) and London (+ 1.7%).

After Thursday’s uncertainty the moves of Frankfurt – zero rates, reduction in interest rates on loans and on deposits, the acceleration Quantitative easing, buying corporate bonds and 4 maxi-Tltro loans – have been welcomed by the European markets.

the BTP-Bund drops to 105 points
the massive purchases were seen while on the market for government bonds with the ten-year yield fell to 1.33%, while the spread Bund narrowed to share 105 points. Money also on the market of raw materials from oil which opened in New York soaring above $ 38, marking a jump of more than 2%; strong even gold grew by 1% to $ 1,284 an ounce.

But to lord it, as mentioned, were banks thanks to new funding that will come from the ECB. “The four new operations Tltro – explain analysts at Credit Suisse – with a maturity of four years will start in June and thanks to this program institutions may obtain liquidity from the ECB in the presence of negative rates. In other words could be paid to ask “loans. No coincidence that the Deutsche Bank analysts have estimated that these measures will enable an average profit growth of European banks of 2-2.5%, or about 3.2 billion euro.

Milan Stock dragged by the bank
On top of the Milan stock exchange then jumped both UniCredit and pace of 9.4%. even money on Ubi and Banco (+ 9%), followed by Mediobanca, Mps, Soul and Bper, all with higher increases to 8%. Intesa Sanpaolo has grown by 7.4%. Other titles he looked at Telecom Italy which closed up 5.47% on the day that President Recchi has branded as “fantasy” to merge with Orange and Vivendi has risen close to 25%.

Wall Street Journal: the Bundesbank opposed to new stimulus measures from the ECB
the German Bundesbank has expressed itself against the latest stimulus measures announced yesterday by the European central Bank. The Wall Street Journal citing unnamed sources whose revelations do nothing but emphasize the long-standing tensions between the two institutions and the difficulty in giving shape to a monetary policy that can lift the economy and the eurozone inflation. The German central bank – defined by the WSJ a “bastion of orthodoxy in monetary policy” – seem worried that repeated stimulus initiatives can trigger a “vicious circle of aspettattive and disappointments,” a source at the US financial newspaper.