It seems the world’s financial markets do consider the European Central Bank’s latest moves to tackle the region’s debt crisis are bold enough.
On Friday there was a sharp fall in the interest rates that heavily indebted eurozone governments like Spain and Italy were having to offer to borrow money.
Share prices rose further in Europe following a big boost for Asia’s markets.
The initial reaction to the ECB programme sent US stocks to multi-year highs on Thursday with the S&P 500 index back at levels last seen in May 2008 when the financial crisis was still gathering pace.
The euro gained, touching a two month high against the US dollar and the Japanese yen and reached its best value in eight month compared with the Swiss franc.
The world’s financial markets may have welcomed the ECB’s plan, but the media and political reaction in Germany was mostly negative. Many there believe this was a reckless move that will cost German taxpayers dear.
The ECB proceeded with this programme despite strong opposition by Germany’s Bundesbank. It won’t take effect until a country that is in trouble requests help.