European stocks soared after their biggest fall since March 2022 ahead of the Fed rates decision as ECB officials explored a strategy to protect the integrity of the euro region.
- The ECB meeting comes after the yield on Italy’s 10-year debt surged above 4% for the first time since 2014.
- The European Central Bank Officials are exploring whether to utilize reinvestments of their pandemic asset-purchase program flexibly as a first defense.
- The European equities benchmark has plunged this year as concerns of hawkish central banks and a possible recession disrupt demand for risk assets, irrespective of stock valuations dropping below their long-term averages.
- Meanwhile, the European stock market’s breadth remains resilient, and there are no signs of panic selling compared with the last two falls in 2020 and March 2022.
European shares came under massive pressure last week after the ECB supported a quarter-point hike in inters rates next month and signaled a bigger increase in the fall.
EuroStoxx 50 up +1.01%, EURUSD up +0.10%
Source: Bloomberg