Draghi's 'surprise' rate cut has sent every correlated asset soaring this morning. Aside from the EUR crashing over 150 pips instantaneously, S&P 500 futures snapped 10 points higher to 1775; Treasury yields dropped 3bps; Silver and Copper jerked 0.5% higher (but quickly reverted in the former as the USD strengthened); European equities (especially Spain and Italy) popped 2%; and peripheral bond yields moved to new multi-year lows with spreads dropping 10bps or so. With Draghi now at ZIRP effectively, who's next top pass the easing parcel to (not the Chinese). What is interesting is that US equities, Treasury yields, and commodities are all fading just a little off that kneejerk - even as EUR presses lower.
