ROME: European markets rallied on Wednesday as the euro plunged to a 12-year low against the dollar two days after the European Central Bank (ECB) commenced its latest bond-buying program.
Compounding the slide in the shared currency’s value was growing speculation that the Federal Reserve may begin to increase its interest rate around the middle of the year.
The Stoxx Europe 600 (SXXP) gained 1.5% to 395.48, following back-to-back declines that shaved over 1% from the index. The pan-European index, which represents large-, mid- and small-capitalization companies across 18 countries, hit a day high of 395.62, a level not seen since 2007.
