Econintersect: Global Markets took off on the back of comments from European Central Bank President Mario Draghi. The Euro has been under additional stress recently due to sovereign debt issues from Spain, Greece and Italy.
Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.
To the extent that the size of the sovereign premia (borrowing costs) hamper the functioning of the monetary policy transmission channels, they come within our mandate.
The question remains how much Draghi is prepared (or really is able) to do. There are significant divergences of opinion as you go through the following headlines:
Read More on Draghi Statement:
Draghi Hopium Pushes The Market Up Again
– econintersect.com
Draghi sends strong signal that ECB will act
– http://www.reuters.com/
ECB chief Draghi vows total support for euro
– http://news.yahoo.com

Stocks Leap on Central Bank Remarks
– http://www.nytimes.com/
Dow rises 2 percent on euro zone comments
– http://www.reuters.com/
Draghi: ECB to do “whatever it takes” to save euro – Businessweek
– news.google.com

BloombergNews: U.S. stock futures climb as Draghi pledges euro defense |
– http://www.bloomberg.com/
Read More on Eurocrisis today:
Europe’s Crisis Hits Profits
– http://online.wsj.com/
French jobless rate reaches record high in nearly 13 years
– http://english.cntv.cn/
German consumer confidence holds up despite crisis: GFK
– http://news.yahoo.com

UK services activity bounces higher in May
Greece and the eurozone in race against time
– http://news.yahoo.com
Euro Watch: Reports Show Economic Problems Have Worsened in Europe
– http://www.nytimes.com/
Spain feels debt heat, Greece way off bailout terms
UK economy contracts 0.7% in second quarter
Funds Cut Euro-Zone Bank Debt
– http://online.wsj.com/