Daily Note – Draghi Disappoints


  • ECB stimulus falls short of the mark
  • Stronger euro, higher yields & lower equities
  • Rate cut, QE extension & change in composition
  • Better economic data pushes ECB to under-deliver

Good morning,

The package announced by President Draghi yesterday was broadly in line with what we had expected – we saw a 10bp deposit rate cut, a time extension of QE until at least March 2017 and the inclusion of regional and local government debt in the PSPP (Public Sector Purchase Programme). However, it did fall short on some crucial dimensions, especially relative to our expectations of a strengthening of the forward guidance. It also disappointed the market significantly and led to stronger euro, higher bond yields and lower stock prices.

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GlobalMacro360 Daily Note 4th December 2015


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Categories: Daily Note