Flow of euros boosts stock markets

matthew lynn

The ECB is pumping out a lot of new money, causing markets to diverge from the real economy in Europe which is actually shrinking

Depending on which headlines you look at, Europe has two different economies right now. If you are reading the market reports, you could be forgiven for thinking that business in Europe is in great shape. Germany"s benchmark DAX index has surged 22% this year and has gained about 60% since its lows in March. Spain"s IBEX has added 19% this year, Sweden"s OMX is up 20%, and Switzerland"s SMI has increased 12%. Other big markets have not recorded double-digit gains, but they are looking in good shape, and have clawed back the losses of January and February. France"s CAC-40 is up 7%, so is ...