MW: European Stocks And Bonds Surge, Dollar Weakens On Fed Move
European stocks and bonds surged, while the dollar weakened and oil prices jumped as Europe's markets reacted strongly to the U.S. Federal Reserve's move Wednesday to buy $300 billion of long-term Treasurys and up to $1.25 trillion of mortgage-backed securities issued by Fannie Mae and Freddie Mac. The dollar was a major casualty of the Fed's move further into quantitative easing. The euro soared to $1.3473 in late New York business Wednesday, up from $1.3017 the day before, and was even higher by 1015 GMT Thursday, at $1.3514 - above the key $1.35 level for the first time since Jan. 9. The Fed's move into quantitative easing Wednesday broke the dollar's back and henceforth any periods of intra- and inter-day dollar strength is to be sold into rather than weakness bought, said Dennis Gartman in The Gartman Letter.
