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Markets buoyed by ECB bond buying plan

Markets buoyed by ECB bond buying plan
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Shares rallied on Thursday as investors welcomed the European Central Bank’s aggressive sovereign bond buying plan.

Europe’s stock market indexes reached levels not seen since March and the euro gained slightly against the dollar.

The region’s banks – which are big holders of eurozone government debt – soaring and the sector gained 5.6 percent.

Economist Zsolt Darvas with Bruegel – the Brussels European and Global Economic Laboratory- told euronews it was necessary to stop the eurozone debt crisis spreading: “In the short term, I think it was needed and this was a wise decision from the ECB Governing Council, to arrive at this conclusion, because market tensions in the euro area and speculation about break up of the euro area had reached a very very high level, so something was needed to stop that process.”

The bourses in Italy and Spain, which are the country’s which stand to gain most from the ECB moves, were the region’s best performers.

But investors will now focus on next week’s German Constitutional Court ruling on the eurozone’s permanent bailout fund on, which may affect the ECB’s plans.