MARKET WRAP: ECB Came A Little Dovish, Markets Jumped


Draghi was concerned about the economic weakness in the eurozone and speculators pushed the markets higher
 



Stocks

  • The S&P 500 Index soared 0.2 percent as of 15:00 London time, despite the lack of any clarity around trade war.
  • The Stoxx Europe 600 Index soared 0.2 percent even though the European banking sector traded lower after Draghi’s statement.
  • The U.K.’s FTSE 100 Index followed other markets and popped 0.6 percent.
  • The MSCI Emerging Market Index jumped 0.6 percent.
Currencies
  • The Dollar Spot Index gained less than 0.1 percent.
  • The euro fell 0.21 percent to $1.1378 after Draghi’s dovish statement.
  • The British pound maintain its 1.30 handle for now but down nearly 0.2 percent
  • The Japanese yen strengthened 0.1 percent to 109.51 per dollar.
Bonds
  • The yield on 10-year Treasuries fell three basis points to 2.72 percent.
  • Germany’s 10-year yield also dropped three basis points to 0.20 percent, ECB wants to slow down its tightening og monetary policy.
  • Britain’s 10-year yield dropped five basis points to 1.28 percent.
Commodities
  • West Texas Intermediate jumped 0.1 percent to $52.66 a barrel.
  • Gold still not finding any attraction 0.1 percent to $1,282 an ounce.



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