European markets soar as Germany moves to lift ‘debt brake’ and raise defence spending
by Richard Partington Economics correspondent from on (#6VPRY)
Berlin's big bazooka' proposal sends industrial stocks surging but fiscal sea change also hikes borrowing costs
European financial markets have rallied sharply and German borrowing costs have soared after the country's prospective leaders announced a historic deal to loosen its debt brake" rule to boost spending on defence.
The yield - in effect the interest rate - on 30-year German government bonds rose by about 25 basis points to 3.08% in its biggest daily increase since October 1998.
Continue reading...