ECB’s Frontloading Reawakens Stock Bulls Stung by April Drop
The Euro Stoxx 50, which includes Airbus rallied 17 percent in the first quarter as the ECB started a bond-buying program, dragging the euro to its lowest level in 12 years against the dollar.
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A shock announcement from the European Central Bank is reassuring investors that the equity rally they were betting on is back on track.
The Euro Stoxx 50 Index jumped 2.7 percent in two days, the most since January, and traders are wagering on further gains. The volume of bullish options on the gauge this month is the highest since June 2012 relative to bearish contracts. That month marked the start of a rally that sent the region’s stocks up as much as 85 percent.