Stocks in the U.S. and Europe soared and the euro rose on Thursday after the European Central Bank announced a bond-buying program to deal with the euro zone's debt crisis. ECB President Mario Draghi largely confirmed market expectations for potentially unlimited purchases of short dated bonds of countries implementing approved fiscal austerity programs and also said the central bank would legally rank equally with private investors buying the same bonds. Draghi justified the plan on the grounds that it would help the central bank’s monetary policy complement economic restructuring by euro zone governments and restore economic growth. Spanish and Italian bond yields fell, while U.S. Treasury and German bund yields jumped as the need for safe-haven investments fell with the ECB plan seen reducing the risk of a euro zone break up. “Draghi with his debt purchase details this morning will move Europe from a bad to a good equilibrium,” said Chris Rupkey, financial economist at Bank of Tokyo-Mitsubishi UFJ in New York. The U.S. Dow Jones industrial average (.DJI) was up 217.11 points, or 1.66 percent, at 13,264.59 late afternoon in New York. The Standard Poor’s 500 Index (.SPX) was up 26.43 points, or 1.88 percent, at 1,429.87, its highest level in four years. ... Continue to read.
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