European stocks log best day in 2 months as ECB outlines plans to end QE
Draghi laid his cards on the table this afternoon as traders saw a firm case of ‘buy the rumour, sell the fact’ play out in the ECB statement.
The shock announcement that the ECB will keep rates unchanged at least until mid-2019 has caused the euro to spiral lower. Whilst the information itself shouldn’t shock markets, the decisive comments today is not the usual style we see Mr Draghi epitomise at monthly meetings. Although negative connotations are attached to the new rate information, Draghi did also note that asset purchases will extend to December, but only at a rate of 15bn euros per month. This news will fill traders with confidence that the eurozone is stepping out of its troubled shadow, albeit at snails’ pace.
Alex Lydall quoted in MarketWatch