Though Mario Draghi very much seemed to tee up a September rate cut from the ECB, that wasn’t dovish enough for the Eurozone indices.
By stating that a rate cut had not been discussed at today’s meeting, the soon-to-be-gone central bank chief caused a wave of displeasure to cover the markets. The DAX threw a hissy fit, plunging nearly 200 points to dive back below 12350, giving up its 3-week highs in the process. The CAC was only comparatively more measured in its response, still falling 0.8%, with the IBEX and FTSE MIB down 0.6% and 1% respectively.
The euro – which has a rough couple of weeks – found solace in the lack of immediate action from the ECB, rising 0.3% against both the dollar and the pound as the afternoon went on.
The FTSE and Dow Jones couldn’t escape the losses seen in the Eurozone. The UK index found itself the wrong side of 7500 as it shed 20 points, while its US cousin dropped 100 points, pushing it back to a one-week low of 2716.
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