Markets, which opened in the red on Friday, turned to mixed performance after ECB President Mario Draghi's speech at the European Banking Congress in Frankfurt, where the Italian called for a quick implementation of the EFSF decisions.
Mario Draghi, who assumed the position of ECB president on 1 November, urged EU officials on Friday to step up the launch of the European rescue fund. “We should not be waiting any longer” stressed Draghi, who thinks the fund should have been made fully operational a long time ago and that further delays might have adverse consequences for the Eurozone financial stability.
The ECB President emphasized that a slowdown is expected in the activity of the majority of advanced economies and that “downside risks to the economic outlook have increased, and the weaker degree of activity will moderate price, cost and wage pressures.”
The ECB continued its Spanish and Italian bond purchases today, which is probably the reason for the fall of the EU countries' risk premiums from record highs they reached yesterday. The spread between the 10-year Spanish and German bonds decreased to 450 basis points from 520 while the Italian/ German spread dropped to 495.
The Eurostoxx 50 Index increased 0.06%, while the German DAX Index fell 0.25% and the French CAC 40 dropped 0.04%. In the UK. In currency markets, the dollar came off from recent highs on early European session. EUR/USD has bounced up from 1.3445 on early Asian session, reaching two-day highs at 1.3550.
The ecPulse.com analysis team consider it a short-lived recovery as “investors are not confident enough that the current political changes in Greece and Italy will help in solving the debt inferno.”
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