Draghi delivered a real kicker to the markets today that caught most by surprise. We saw some huge moves across European assets.
The Eurostoxx 50 futures rallied by 2%. Note there is a level here, but the move today is important as it really was not in most investors’ “books”. 3500 is the next big resistance should we take out April highs.
The DAX closed 2% higher as well.
Early May highs is a level to watch but more important is the huge 12500 level. Note the DAX bounced right on the 12k today.
Major moves in indices were accompanied with a move lower in the V2X index.
The above moves were big, but they fall shy of the huge move lower in European credit risk today. Draghi managed taking the credit space by surprise. Credit is a big input of the overall European risk sentiment, so be sure to watch it before taking any bigger equity or volatility bets.
Source, Charts by Bloomberg
