From omnipotence to impotence... in 90 minutes
Just as we warned earlier,
As for the market reaction, keep a close eye on the duration of the risk bounce: if risk refuses to push higher from here, or worse - tumbles - the market will have clearly given its verdict on all current and future Draghi jawboning and called the ECB's bluff: no more words, actions are now demanded.
Form a Reuters article on hedge funds which "boast lower losses as markets tumble":
Unless something very unexpected happened in the past few days, we had the impression that Mr. Tilson is male.
Back in September, Draghi set the stage for the unleashing of an imminent QE bazooka, something the market was fully convinced would take place on December 3, pushing the EUR lower by nearly 10 big figures and pushing European stocks to nosebleed levels. When it didn't, and when Draghi unveiled a water pistol instead, the EUR soared by a near record amount, and Euro assets crashed.
Fast forward to today, when as we previewed earlier today, nobody was expecting much if anything from Draghi, to wit:
Late last month, we took a look at Russia’s economy and concluded that although the country has proven to be remarkably resilient in the face of collapsing crude prices, the outlook is darkening.