European Stocks’ Santa Curse Set to Lift as Draghi Deliversby
Euro Stoxx 50 on track for first December gain in three years
Equities have rallied in run-up to ECB policy meeting
A so-called Santa rally that has eluded European stock traders for the past two years is within grasp, thanks to Mario Draghi.
The Euro Stoxx 50 Index has climbed 4 percent in the last month of 2016, extending an advance on Thursday after the European Central Bank president announced an expansion in stimulus measures and broadened the rules of its asset-purchase program. The gains dovetail with a longer-term trend of advances in the final month of the year.
- European equities have rallied this week on investor optimism over policy support from the ECB after a “no” vote in Italy’s referendum prompted Prime Minister Matteo Renzi to resign. Benchmarks in Italy and France entered bull markets, while Germany’s DAX Index rose above 11,000 for the first time this year.
- The Euro Stoxx 50 has climbed an average 0.9 percent over the past 15 Decembers.
- Euro-area stocks are still down 2.7 percent in this year, poised for their first annual decline since the peak of the sovereign-debt crisis in 2011.
- More on today’s ECB policy decisions here.