European markets cheered dovish words by Mario Draghi at the start of the week, after the president of the European Central Bank (ECB) delivered a wide-ranging speech which many deemed to mark a key turning point in rhetoric.
Draghi’s comments, at the Jackson Hole meeting of central bankers in Wyoming on Friday, raised expectations of further policy easing by the central bank. Hopes of further stimulus pushed stocks in Europe higher on Monday.
The euro, meanwhile, stumbled to 1.3189 against the dollar – a level not seen since September 2013. German sovereign bond yields also eased lower amid expectations that the ECB could begin a major asset-buying program.