MARKET UPDATE

So ECB President Mario Draghi will use all the tools available in his box to trigger a recovery in the EZ economy. There was confirmation at the ECB lunchtime meeting today. Panmure’s Simon French had prescribed Draghi’s medicine in his note this morning and Draghi’s comments had the desired effect of sending the Euro lower in the knowledge that bundles of liquidity would be hurled at any problem that manifested itself in the future. So ‘Quelle surprise’ that with China shut for 72 hours on holiday, European stocks grabbed the opportunity to regroup. That DAX at 4.05pm was up 3.2% with the DAX also showing quite a good deal of form raking in 2.8% in value.

 

The FTSE 100’s performance was hardly sluggish as it rose by 2% to 6210 at 4.10pm. Miners jostled for the yellow jersey adding between 4-6% followed by oils – up 3%. Drugs were solid with Astra the star in adding 3.5% in value. Banks have also regained some poise in adding 2%. Hats off to easyJet – Up 5.5% on great numbers! The Street of Dreams was carrying on where it left off yesterday – the DOW up another 1.2%. Volatility will rule OK. Expect a quiet morning tomorrow ahead of the Payroll data. Many expect 223k jobs to have been created in August and the unemployment rate to have fallen from 5.3% to 5.2%.

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