ECB’s quantitative easing increases European trading volume

European Central Bank (ECB) started its securities purchase program on March 2015 with € 60 billion purchase per month. This massive and unprecedented easing by ECB has resulted in investors pouring money to the regions' assets.

• As per numbers from Markit. European equities trading volume has surged 28% in the first half of the year compared to same period in 2014. ETF volume surged from $159 billion in H1, 2014 to $314 billion this year.
• Total volumes hit $6.36 trillion and large portions of that remains dominated by US banks.

European stocks have clearly benefited from the surge in interest.

• Pan European blue chip index EuroStxx50 rose by more than 15% so far this year.

Latest data from EPFR, a global fund flow statistics provider, paints an upbeat mood.

• Global investors have remained net buyer of European equities for 11th consecutive week, in spite of tensions from Greece.

With ECB likely to keep purchasing till September, 2016, European equities are likely to trade higher and provide better returns.