ECB’s QE boosts equity prices beyond fundamentals – DNB research
Negative sovereign bond yields encourage investors to increase exposure to riskier assets
The European Central Bank’s announcements on its asset purchase programme boosted equity prices beyond fundamentals, says research published by the Netherlands Bank.
The Dutch central bank analyses the reaction of 10 European equity index to changes in the ECB’s quantitative easing programme. “Periods around the announcement of quantitative easing in the euro area are generally accompanied by a strong increase in equity valuations,” says the research. “This increase is stronger than may be
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