A 'successful' Spanish auction and Draghi's reassuring anti-currency war chatter had little to no effect on Europe's equity markets but FX and bond markets moved quite significantly. A mix of small gains (CAC, DAX) and small losses (Italy, Switzerland) in stocks but Italian and Spanish bond spreads dropped 10-15bps further (down 30bps on the week) - back well below the pre-Italian election levels and Portugal goes from strength to strength on the small ratings upgrade last night (-50bps on the week). EURUSD was the story (and EURJPY) as a lack of concern over Euro potential strength by Draghi drove it to run stops above recent highs and end the day at 1.3100 (up around 130 pips on the day). *EURJPY is now back to pre-Italian election levels.*EURJPY recovered all its Italian election losses...
as European Stocks flatline for the second day...
and European bond spreads collapse back towards pre-Italian election levels (and already well beyond it for Spain and Portugal)...
Charts: Bloomberg Reported by Zero Hedge 40 minutes ago.