Stocks, Euro Surge On Another Central Bank Intervention Announcement: ECB Ready To Buy Italian, Spanish Bonds

More central bank intervention headlines, and the euro and stocks, which earlier were plunging without a floor, surge:

  • ECB ready to buy Italian and Spanish bonds if Berlusconi commits to bring forward specific reforms according to sources
  • ECB expects Italy to fast-track welfare reform, fiscal rule for bond purchases according to sources close to talks
  • EU leaders applying intensive pressure on Berlusconi to make an announcement according to sources

Said otherwse, open the QE floodgates. Globally. Central banks now control it all. Net result, a 100 pip surge in the EURUSD, and a halt to the market plunge. For at least a few more minutes...

Good luck to anyone trading this lunacy.

And from Reuters:

The euro jumped against the dollar on Friday, hitting session highs, after sources said the European Central Bank said it is ready to buy Italian bonds if Italy commits to accelerate economic reforms to bring down the country's debt.


On Thursday, traders were disappointed that the ECB were buying Portuguese and Irish bonds instead of Italian and Spanish debt. Investors are currently focused on Italy and Spain, as they feared these two countries would follow Greece's footsteps in seeking a bailout.


The euro rose as high as $1.42470 <EUR=EBS> and was last at $1.42137, up 0.8 percent.