The euro zone may not have delivered any fresh stimulus to bolster the economy, but the way markets have rallied in recent weeks would suggest otherwise.
Stock markets from U.S. to Asia got a boost after German Chancellor Angela Merkel vowed Thursday to do “everything” possible to keep the euro intact . Her comments follow similar rhetoric from European Central Bankchief Mario Draghi three weeks ago, which also stoked a rally in global equities.
Some analysts say the remarks have had an effect akin to launching a fresh round of quantitative easing , and more importantly, injected confidence into markets.
“There’s no secret out there, I call it quantitative easing incognito, but we all see the effects,” Jack Bouroudjian, CEO of fund manager Bull and Bear Partners, said on CNBC Asia’s “Squawk Box.” “Volumes are slim but, remember, the tone of what is happening now seems to be a lot different. Just a few weeks ago, we were talking about a Greek exit. Now, it’s more a question of what Europe is going to look like, in another couple of years staying together.”
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