DRAGHI OPENED HIS MOUTH...

and the European markets dropped sharply yesterday. The investors are concerned about that the ECB would soften its broad-based package of quantitative easing in January 2015. The ECB President Mario Draghi had poured cold water on hopes the ECB would begin a program of sovereign-debt purchases called QE. The Central Bank held interest rates at a record low. The red arrow shows the reaction on Super Mario’s speech on CAC40.

And you can find the same template on DAX as well:

All Europeans suffered quite sever drop and just have recovered slowly. The US indices finished a modest day, after the intraday records they had turned into red territory.

• SP500 -0.12%
• DJIA -0.07%

Most of the investors are waiting for today’s monthly job report so we are expecting some big moves later today. The outlook is good for SP500, the index still holds steadily the resistance level at 2.073, so after 7 consolidation days might come a bigger rally today and Monday.

The BFM Assets Team.