Draghi Gains Evaporate, Europe Ends Week Unchanged
So it seems the full decay life of an ECB head is now 25 hours as the gloriously dovish comments from Draghi yesterday (that really said no liquidity withdrawal anytime soon) that spiked stocks up 1-4% across Europe have been battered back to unchanged by a good is bad jobs number in the US bringing the end of the Fed punchbowl ever closer. On the week, Portuguese bonds ended 68bps wider (with Spain and Italy 10bps tighter); Treasuries are underperforming Bunds by a very notable 21bps on the week. Despite stocks being generally unchanged (with Italy/Spain up around 2%), credit markets closed notably wider on the week. EURUSD is down around 200 pips on the week with the last 2 days the worst in almost 4 months.
Draghi gains gone..
and the DAX closes as the big underperformer...
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