Despite the massive monetary support from the EU, the Euro currency failed to hold gains overnight. The stockmarkets are now closely correlated with the Euro/US dollar cross rate, with each movement being mirrored in the markets. The fall in the Euro explains why there has not been the same follow through buying in the Australian markets this morning.

The EU action mirrors the monetisation the US Federal Reserve undertook during their crisis over the past 2 years. In effect, the central bank is guaranteeing the liquidity of the European banking system, hence the over 10% rally in their banking stocks. The EU Central bank funds are created from thin air, via the printing press. Similarly, the US federal Reserve now has a balance sheet of over $2 Trillion. So zero percent interest rates allows the banking system to earn a nice fat interest spread, allowing them to repair their balance sheets. Just don't mention the mark to market value of their assets. It is fair enough though, as the Banks are guaranteed by their respective Governments.

You can take the perspective that with the liquidity and zero interest rates, the market will go higher in terms of dollars and Euros. In the long term there are going to be a lot of dollars and a lot of Euros, so your wealth may appreciate in a depreciating asset.