Germany’s finance minister Olaf Scholz said on Sunday that his country is strong enough to tackle any future economic crisis “with full force.”
On Monday European stock markets rose sharply as investors reacted to the news that Germany might inject stimulus into the stalling economy.
The FTSE 100 climbed 1%, the French Cac 40 rose 0.9% but Germany’s Dax was the largest riser as it went up 1.2% in early morning trading.
Michael Hewson, chief market analyst at CMC Markets, said the German’s finance ministers words were “significant given Germany’s tendency to err towards fiscal prudence.”
“However, it is far from being anywhere near bad enough to prompt the German government to deviate away from its zero deficit or ‘black zero’ policy,” Hewson said.
Jasper Lawler, head of research at London Capital Group said, “Growing expectation of stimulus measures from countries across the globe is going a long way to boost sentiment.”