Via Damien Boey at Credit Suisse:
Overnight, ECB President Draghi launched his “bazooka” stimulus option – but markets experienced some highly counter-intuitive moves. Specifically, bond yields rose in response to the resumption of ECB quantitative easing, while the EUR/USD strengthened on ECB rate cuts. Equities responded favourably to these developments, although interestingly, momentum and bond proxy stocks outperformed value stocks, slightly unwinding some of the seismic moves we have seen from the past week.
ECB bazooka
