By Jacques Bossuyt.
Today (Friday), we are 6 trading days after the very promising ECB meeting when Mr. Draghi took the big bazooka out, and in the meantime we had also a Fed meeting.
Remember, the ECB’s target was to boost the equity market and to lower the Euro.And what do we see today ?
Yes, European stocks (the Stoxx50, where the hot-money flows in & out) went up 1.45%. The broader market Stoxx600 only rose a poor 0.76%. But the Euro, instead of going down, rose 2.46% !
A stronger Euro is not what Mr. Draghi wanted, and is not good at all for our exporters neither for the ECB’s inflation target.
Target missed, like in Japan.
Meanwhile, the S&P500 rose 3.30%, and the US Dollar fell by 2.40% while the Fed did NOTHING.
Conclusion : Mrs. Yellen obtained by doing nothing, what Draghi and Koruda didn’t obtain with all their unconventional (and dangerous) measures.
It seems that Mr. Draghi’s measures will only benefit the European fixed income market. Looking to some graphs, we notice that most Fixed Income Funds and Indices are climbing since mid-January, with some jumping since 10/3 and some already falling back. Today they are nearly all at the same level as 12 months ago. So, is it worth tojump on this bandwagon ?
Publié le 21 mars 2016
