3 reasons why the ECB stimulus matters

Draghi said Thursday that the ECB will purchase €60 billion worth of bonds a month as part of its so-called quantitative easing program, a good bit higher than chatter Wednesday predicting just €50 billion.

“The market reaction: pretty much unalloyed joy. Almost everything rallied,” wrote Kit Juckes, global head of foreign exchange strategy for Societe Generale, in a report. “About the only thing which didn’t rally was the Euro.”

But more importantly, the ECB’s announcement showed investors that Europe may finally be serious about repairing its many economic problems. That should help contain the negative spillover to the U.S.

“This is a big deal. The EU countries do not fully agree with each other but are all aligned in desire to get Europe back on track in a robust manner,” said David Marcus, manager of the Evermore Global Value Fund (EVGBX).

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

CNN Money