Signs of hope

For all the gloom and doom surrounding Europe so far this year, the region’s sharemarkets have done well. Depending on which country you look at, European markets are up anywhere between 14 and 24 per cent. The US is next best, up about 17 per cent, with Asian and Asia-related markets posting more modest gains, ranging between 7 per cent and 14 per cent. The European Central Bank with its long-term refinancing operation seems to have solved the problems for the region’s troubled banking sector. Through its €500 billion ($612 billion) program it has forced interbank funding spreads lower for the first time in a year.

The Australian Financial Review