European stocks drop as Draghi effect quickly fades

12 November, 2015

A minor rally in the European stock markets quickly ran out of steam as the ECB President Draghi offered nothing new to the markets via his speech in Brussels. At the time of writing, the pan-European Euro Stoxx 600 was down almost 0.5%. The Germany’s DAX was down 0.5%, while France’s CAC was down 0.85%. London’s FTSE also traded lower by 0.6%. 

Stock markets saw a brief rally along with bond prices after Draghi said the bank will reassess the need to do more easing at the December meeting. The odds of more easing increased after Draghi expressed concerns over the core inflation. 

However, the Draghi effect did not last long enough. The bond prices trimmed gains, while the EUR recovered off lows and the stock markets turned lower. 

Among Stoxx 600 index, shares in Rolls-Royce were down almost 20%. Glencore was down 6%, while shares in German firm RWE were down 8%. On the other side was the Austrian lender Raiffeisen Bank; which rose 4.2%. Shares in Carlsberg were up more than 2%.


Source link  
Dollar risks getting dumped

While today's US inflation report is getting touted as being key for the short-term direction of travel for global markets, we're a bit more sceptical...

Gold drops to 4-month low

Gold (XAU/USD) hits a four-month low of $1256. 08 today as yield curve continues to collapse on speculation that tax reform would open doors for faster...

Euro approaching the support level

A break of $1.1800 would be technically important. Sterling, like the euro, appears to have traced out a reversal candlestick pattern-shooting...


Gold holds steady near 6-week highs

Gold trimmed of the early gains to a six-week high and retreated to the $1262 region during early the European session, albeit has managed to hold...

USD stays under pressure on politics

The US dollar inched up from a 13-month low against a basket of six major currencies touched in early trading, assisted by strongerthan-expected...

Dollar rebounds from multi-month lows

The greenback selling pressure seems to have abated for the time being, with the key US Dollar Index (DXY) bouncing off 9-month lows...


EUR/GBP jumps to fresh yearly tops

The EUR/GBP cross was seen building on previous session's strong up-move and has now jumped to fresh yearly tops near 0.8875...

USD: Fed being a little more hawkish

The dollar picked up over the past week, and this continued to be in reaction to a Fed that is being a little more hawkish...

EUR sluggish in recent weeks

EUR has also been surprisingly soft in light of the convincing win by French President Macron...

  


Share: