Forget the conditionality, Draghi said it would be solved and we should believe - and believe everything in Europe did! Equity markets soared 3-5% (with EuroStoxx catching up to Gold YTD), credit spreads - which had outperformed in the last few days - rallied rather notably, European sovereign bond yields (2Y yield down 15-20bps) and spreads tumbled dramatically (10Y spreads down 30-50bps), Europe's VIX collapsed 4.5 vols to 23%, and EURUSD surged back to the highs of the day into the European close (after being down immediately after the press conference). Capitulation? who knows? Reality? not even close.
European Stocks...
[5]
as EuroStoxx catches up to Gold YTD...
[6]
European 10Y Spreads...
[7]
European 2Y Yields...
[8]
EURUSD...
[9]
European VIX...
EURopean EURphoria...
Charts: Bloomberg