LONDON: Europe’s main stock markets rallied after an ECB executive board member signalled that the eurozone central bank would temporarily ramp up its stimulus program, dealers said.

In afternoon trade, the benchmark CAC 40 index of top companies in Paris won 1.79 percent to 5,101.86 points while Frankfurt’s DAX 30 surged 1.94 percent to 11,819.72 points compared with the close on Monday.

London’s FTSE 100 added 0.49 percent to 7,002.89 points, with gains tempered by news that British inflation fell into negative territory for the first time since 1960.

In foreign exchange, the euro sank to $1.1122, down from $1.1315 late in New York on Monday.

“Equity markets are ecstatic over the news that the ECB will front-load its bond buying scheme, and the short-term boost to the QE scheme has driven stock markets around Europe higher,” said analyst David Madden at trading firm IG.

ECB member Benoit Coeure, speaking at a conference in London on Monday, declared that the bank would purchase more assets than previously planned in May and June under its multi-billion-euro quantitative easing (QE) stimulus program, owing to an expected market slowdown in the summer months.

“We are ... aware of seasonal patterns in fixed-income market activity with the traditional holiday period from mid-July to August characterised by notably lower market liquidity,” he said.

He added that the ECB is “moderately front-loading its purchase activity in May and June, which will allow us to maintain our monthly average of 60 billion euros.”

The ECB has stated that the QE stimulus, launched in March at a pace of 60 billion euros a month, would last at least through September 2016.

ECB chief Mario Draghi last week declared that the bank’s massive stimulus for the eurozone will remain in force “as long as needed” to stabilize prices.

With the eurozone economy and inflation recently picking up, there has been speculation that the ECB would wind up early its unprecedented 1.1 trillion euro asset-purchase program.

Coeure’s speech eclipsed ongoing market concerns over the Greece’s cash crisis, dealers said.

“Developments in Greece have taken somewhat of a backseat in Europe this morning with investors instead focused on comments from the ECB’s Benoit Coeure,” noted Atif Latif, head of dealing at Guardian Stockbrokers in London.

“The comments have sent both European stocks and bonds sharply higher this morning while the euro has dived in currency space.”

Greece on Monday entered the final stretch of tortuous talks with the European Union and International Monetary Fund, with Athens calling for a breakthrough by the end of the month.

The Greek government and creditors have been stuck in a deadlock for four months over the reforms required to release a final 7.2 billion euros in bailout funds that are needed to service its debts and avoid default.

On Tuesday French President Francois Hollande and German Chancellor Angela Merkel stressed the need to speed up efforts to reach a Greek loan deal.

“We must accelerate it because the deadline is approaching,” said Hollande as Greece’s current bailout program expires at the end of June.

Merkel said that Greek Prime Minister Alexis Tspiras would be among European leaders at a summit in Riga later this week and that “we’ll see if opportunities for discussion emerge.”

Asian markets mostly rose Tuesday following a record close on Wall Street on Monday, but concerns about Greece’s long-running debt-reform talks weighed on the euro.

Hong Kong gained 0.36 percent, Tokyo stocks climbed 0.68 percent, Seoul rose 0.34 percent and star performer Shanghai surged 3.13 percent. But Sydney finished 0.77 percent lower.

Wall Street stocks eased off of record highs in opening trade Tuesday, as strong US housing data was offset by disappointing Walmart earnings.

Ten minutes into trade, the Dow Jones Industrial Average was down 0.12 percent at 18,277.23 points, while the S&P 500 slipped 0.13 percent to 2,126.39. Both had closed at record highs on Monday.

The tech-rich Nasdaq Composite Index meanwhile slid 0.01 percent to 5,077.92.