10.5.10

Stocks, euro surge after European central banks buy bonds

European central banks began buying euro zone government bonds under a $1 trillion global (665 million pound) emergency rescue package agreed on Monday, sending the euro and European stocks and bonds surging on relieved markets.

The "shock and awe" plan -- the biggest since G20 leaders threw money at the global economy following the collapse of Lehman Brothers in 2008 -- triggered a global stock market rally after panic selling last week.

But it left longer-term questions about whether Europe's weakest economies can manage their debt and how the European Union can develop more coherent economic and fiscal policies to underpin the single currency.

The European Central Bank immediately began implementing its part of a deal hammered out by EU finance ministers, central bankers and the IMF in marathon weekend negotiations.

http://uk.reuters.com/article/idUKTRE6461B920100510

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