Trust in the stock markets after Draghi speech: Milan, Frankfurt and Paris all up

Mario Draghi speech has comforted investors and stock exchanges registered an upward trend. On Friday in fact, the European Central Bank President talked at the Jackson Hole Summit about “unconventional measures to safeguard the expectations of inflation in the medium- and long-term” and help the economy as well. Draghi, reiterating that structural reforms are crucial, opened the door to the hypothesis of increased flexibility in consolidation policies for public finances, only if connected to the strengthening of the economy and of the job market.

His words comforted investors and European stock markets registered an upward trend, consolidating last week’s increase: Milan +1 as well as Frankfurt and Paris, while London is not open due to National Bank Holiday today. The Btp-Bund spread decreased to 156, with a 2.55% yield. € in sensible decrease, under 1,32$ (lowest from September 2013).

Still, Guardian’s Economic Editor asked Draghi to do more, saying a modest quantitative easing programme won’t be enough and suggesting the ECB to do something different, as the Fed, Bank of England and Bank of Japan have done.