Nasdaq · October 10, 2011
The day Europe agreed to recapitalise its banks
+3.50%
single-day change vs previous close
Part of a longer stretch
Six months after Europe opened the taps
early in it · 2011-10-03 → 2012-03-26, +33.68% over the whole period
What happened that day?
- The Nasdaq rose 3.5% on the day. The low of this phase had come a week earlier
- Over the weekend the German and French leaders said they had agreed a plan to put capital into European banks
- The banking problem and the sovereign debt problem were feeding each other. Banks held a lot of their own governments' bonds, so a shock to one shook the other
- Adding capital breaks one link in that loop, because the bank can survive a fall in bond prices
- From this day the Nasdaq rose for almost six months, into March of the next year
- The agreement only set a direction, though; the actual money arrived that December through the ECB's long-term loans
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.