The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
By Ivan Martchev for InvestorPlace
NEW YORK ( InvestorPlace) -- The massive rebound in European equities -- particularly in eurozone financial stocks like Deutsche Bank (DB)and BBVA (BBVA) -- is due to the aggressive monetary and fiscal actions taken to stabilize the eurozone sovereign debt markets.
Since many indicators of eurozone financial stress are improving, the above stock market reaction is normal and likely will continue should formerly problematic sovereign bond markets continue to stabilize.When I was asked to comment on the European multi-asset rally this week, I almost called up a familiar bond expert, as this eurozone rebound is as much about stocks as it is about sovereign bonds.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts