European stocks jump as ECB holds surprise meeting
European stocks rallied on Wednesday, with banks leading the gains, after the European Central Bank said its rate-setting Governing Council would hold an unscheduled meeting to discuss the recent sell-off in government bond markets.
An index of euro zone shares climbed 1.5%, while the pan-European STOXX 600 added 1%.
Shares of euro zone banks have fallen sharply in the past week, hit by a selloff in southern European bond markets after the ECB said last week it saw no need to create a new tool to help weaker economies cope with rising borrowing costs, as it ends bond buying and looks to hike rates.
“However, if there aren’t any important details delivered today, we see the case for the massive selling in bonds to continue.”
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