Euro zone bank shares jumped and Italian government bond yields fell on Wednesday after Bloomberg reported the European Central Bank is holding discussions on the design of new ultra-cheap bank loans.
The ECB meets on Thursday amid speculation that it is getting ready for a fresh round of stimulus via cheap bank loans.
The loans known more formally as Targeted Long-Term Refinancing Operations (TLTROs) are expected to boost troubled euro zone lenders. The euro zone banks index rose to a day's high, up 0.2 percent.
Italian government bond yields also briefly extended falls as investors cheered the report. Italy's 10-year government bond yield touched its lowest level in just over a month at 2.661 percent and was last down 4 basis points on the day.
The euro fell to a two-week low at around $1.12855.
- Deutsche Bank and Commerzbank shares rise on merger talk
- Six operators explore the power of 5G in use cases beyond better broadband
- House of Lords report calls for digital super-regulator
- Geneva motor show: Brexit, electric cars and luxury are all here
- France proposes new tax on internet platform goliaths
- Fibre reacts autonomously for the first time to changing net conditions
- Broadband Forum update aims to boost migration to cloud access networks
- Telefónica and Hutchison join to serve business customers better
- Italy's finance chief says Rome's major problem is investor confidence
- #WeEuropeans public consultation: It’s time to take back control