"Whatever it takes" has morphed to "throw everything at it and pray." In a bigger-than-expected bazooka, Mario Draghi sent EUR/USD tumbling, Bund yields rising, and stock prices surging (along with considerable bond spread compression). Bank stocks are up in various regions but the real question is - what happens if this "doesn't work"?
EUR tumbles (but only to one week lows)
Despite the uber QE, Bunds are disappointed with only a 10bps cut...
DAX is surging...
Bank stocks are soaring (led by limit-up moves in Italy)
Credit spreads are collapsing...
And of course, US equities are loving it... because all stimulus is fungible (and useless)
Charts: Bloomberg
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