Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

That’s All There Is: Draghi Drags His Heels And Says ECB Isn’t Likely To Cut Interest Rates Further

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

Mario Draghi tried to reel back his stimulus torpedo by saying further stimulus isn’t likely. Investors responded by singing “Is that all there is?”

Liquidity moves markets!

Follow the money. Find the profits! 

({Bloomberg) –0 The European Central Bank can cut interest rates further but isn’t likely to, Mario Draghi said after unveiling stimulus on Thursday that brought borrowing costs to record lows, expanded asset purchases and offered a borrowing subsidy to lenders.

“It’s a fairly long list of measures, and each one of them is very significant and devised to have the maximum impact in boosting the economy and the return to price stability — we have shown we are not short of ammunition,” the ECB president told reporters in Frankfurt after a two-day meeting of the Governing Council. “From today’s perspective, we don’t anticipate it will be necessary to reduce rates further.”

European 10 year sovereign yields reversed from being down in the morning to being up in the afternoon.
wbmpd

European equities deflated like a day old Burger King Whopper after Draghi’s admission that “that’s all there is.”

The USD/EUR cross rose in the morning, but fell when Draghi admitted it would NOT be “Sugar in the morning, sugar in the evening, and sugar at suppertime.”

No investors, Mario isn’t singing “Sugartime.” At least, not until this fails.

81DVXD9xQIL._SL1500_ 

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.