MARKET WRAP: Draghi Pushed The Markets Lower With His Dovish Statement

Mario Draghi delivered another surprising statement today. Clearly, the bank is trying to stay ahead of the curve and delivered a dovish statement. The bank lowered its growth and inflation forecast and introduced TLTROs as we suggested in the morning. This pushed the Euro-dollar lower.


  • The S&P 500 Index fell 0.4 percent as of 15:30 London time ahead of the US NFP data which is due tomorrow.
  • The Stoxx Europe 600 Index fell 0.5 percent after the ECB’s president showed his dovish side.
  • The U.K.’s FTSE 100 Index dropped 0.3 percent; investors are widely focused on Brexit.
  • The MSCI Emerging Market Index failed to show any upticks and dropped 0.6 percent by following other markets.
  • The Dollar Spot Index still maintaining its strength and jumped 0.3 percent, the strongest level in 10 weeks.
  • The Euro plunged 0.6 percent to $1.1241, hitting the lowest point since November.
  • The British pound also fell 0.4 percent to $1.3116, continuing its sixth back to back decline.
  • The Japanese yen didn’t show any exciting moves and remained unchanged at 111.72 per dollar.
  • The yield on 10-year Treasuries dropped three basis points to 2.66 percent.
  • Germany’s 10-year yield fell four basis points to 0.09 percent, touching the weakest level in almost four weeks.
  • Britain’s 10-year yield maintained its downward move and dropped four basis points to 1.18 percent.
  • West Texas Intermediate crude soared 0.32 percent to $56.43 a barrel.
  • Gold is still below the critical level of 1300 and dropped further 0.2 percent to $1,284.16 an ounce, the lowest point in six weeks.