Fund managers and City commentators say they are pleased and impressed with the European Central Bank’s dramatic new intervention in the region’s government bond markets — but pointed out the central bank had to move to “regain credibility” following a week of disruption.

The ECB’s purchases of government bonds, asset-backed securities and credit paper, amounting to around €80bn a month, will continue until at least the end of the year; adding to an existing €20bn-a-month programme. The announcement provoked some positive market reaction this morning, with Italian bonds climbing and a bounce for some European stocks — though the UK and German markets stayed in the red as of 11.30 GMT.