A 'successful' Spanish auction and Draghi's reassuring anti-currency war chatter had little to no effect on Europe's equity markets but FX and bond markets moved quite significantly. A mix of small gains (CAC, DAX) and small losses (Italy, Switzerland) in stocks but Italian and Spanish bond spreads dropped 10-15bps further (down 30bps on the week) - back well below the pre-Italian election levels and Portugal goes from strength to strength on the small ratings upgrade last night (-50bps on the week). EURUSD was the story (and EURJPY) as a lack of concern over Euro potential strength by Draghi drove it to run stops above recent highs and end the day at 1.3100 (up around 130 pips on the day). EURJPY is now back to pre-Italian election levels.
EURJPY recovered all its Italian election losses...
[8]
as European Stocks flatline for the second day...
[9]
and European bond spreads collapse back towards pre-Italian election levels (and already well beyond it for Spain and Portugal)...
[10]
Charts: Bloomberg