Who would listen to an investment bank nowadays? Well Europe certainly heeded a buy posting on its stocks from Morgan Stanley.
Strong gains throughout the day doubled on the late news the US giant has hoisted its colours, striking its “full house sell signal” of last June and unfurling “full house buy”.
It is not just banks stirring from their coma moving the markets: the US election counts, too, says one analyst:
“The new administration will embark on a fairly expansionary fiscal policy in order to prop up the economy, and I think gradually over time we will see an administration that starts to pay a little bit more attention to the financial sector, to repair the financial sector.”
The close was between four and five and a quarter percent in the major markets, with even the poorest performer, Brussels, gaining two and a quarter percent.
Interbank leading rates continue to ease as expectation rose in Europe that the ECB and Bank of England will cut rates further on Thursday.