The European Central Bank unexpectedly cut interest rates and introduced a new bond-buying program to stimulate the European economy. The news sent stocks in Europe higher, and the bullish sentiment spread across the pond to the U.S. stock market.
The move included cutting on three key interest rates by 10 basis point each. The rate on deposit facility is now a negative 0.2 percent.
The European stock market as a whole has greatly underperformed other regions around the world in the last few months, as fears of a recession have increased. The move by the ECB is seen as a positive for stocks and a negative for the Euro, which fell to the lowest level since July 2013 versus the U.S. dollar.
The pullback from highs set earlier this year combined with the most recent move by the ECB could be the perfect storm for the European equity ETFs. There are numerous ways to play a European stock market rally, and a few of the biggest and broadest could be the ...
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