FTSE CLOSE: ECB stimulus keeps stocks in black but nerves are fraying at chance of left party victory in Greece

Euphoria over the ECB's stimulus plan kept the markets buoyant for a second day running, sending the FTSE 100 up 36.20 points to 6832.83 by the close.

Top German and French markets also posted 2 per cent gains today as the prospect of a big eurozone money printing programme helped to soothe nerves about the outcome of the Greek election on Sunday.

The vote will see anti-austerity left-wing party Syriza elected if opinion polls prove correct. Syriza leader Alexis Tspiras wants to renegotiate debt repayment deals, setting him on a collision course with German Chancellor Angela Merkel which could end in Greece leaving the eurozone.

In New York, the Dow Jones was trading down 47.8 points at 7,766.2 as weak US manufacturing and home sales data dampened sentiment.

There was also concern a stronger dollar could hurt US exporters. The euro has fallen sharply against the greenback following the ECB announcement of just over €1trillion of asset purchases.

The pound was also up two cents to a new seven-year high against the single currency at €1.34 today. But sterling dipped below $1.50 at one stage versus the US dollar due to the UK's close trading links to the eurozone.

Chris Beauchamp, market analyst at IG, said: 'With the ECB having lit a fire under European stocks with QE, it looks like the bargain hunters will be crossing the Channel in large numbers for a rich harvest in undervalued European firms.

'Over on the continent indices are enjoying another good day, although Greece’s election on Sunday means that the likes of the DAX and

CAC 40 have not been able to hold onto their highs.

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