European stocks fall on the latest ECB decision
Banking stocks are down, as periphery bonds sell off on the lack of further stimulus action by the ECB in their latest decision today. Italian 10-year bond yields have jumped to 1.83% currently as we see European indices slide to over 1% losses.
The key takeaway from the ECB decision is that they didn’t provide any further follow-up on PEPP besides reaffirming that they will be willing to take further action.
Do be reminded that their commitment for the programme is until the end of the year, but at its current pace, they will meet the €750 billion target by October already.
Meanwhile, they did ease TLTRO conditions and introduced new refinancing operations for the pandemic but the details will all be provided later.
For now, it is all over to Lagarde to try and pacify the market and her language is going to be key to not disappoint investors. Can she pull off a whatever it takes moment?