Business

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:

• DRAGHI SEES RATES AT PRESENT OR LOWER LEVEL FOR SOME TIME
• DRAGHI SAYS DOWNSIDE RISKS HAVE INCREASED SINCE START OF YEAR
• DEC 3 DECISIONS STRENGTHEN OUR FORWARD GUIDANCE
• DRAGHI SAYS POLICY STANCE WILL NEED TO BE REVIEWED
• MUST REVIEW, PERHAPS RECONSIDER MONPOL STANCE IN MARCH
• DRAGHI: RISKS COULD WEIGH ON EXPORT DEMAND, CONFIDENCE
• DRAGHI: RISKS RELATE TO GLOBAL ECON UNCERTAINTY, GEOPOL RISKS
• DRAGHI: RISKS TO EMU GROWTH REMAIN ON DOWNSIDE

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.

Nobody was expecting a rate cut (and hopefully not a hike) from the ECB today, and that's precisely what they got when moments ago the ECB announced it would keep its three key rates unchanged as follows:

• Marginal Lending Facility: 0.30%
• Deposit Facility: -0.30%
• Main Refinancing Rate: 0.05%

The full release:

• Global Stocks Face Fresh Losses (WSJ)
• European stocks lick wounds after mauling, oil steady (Reuters)
• Hang Seng Index Sinks Below Net Assets for First Time Since 1998 (BBG)
• U.S. Hedge Funds Boast Lower Losses as Markets Tumble Further (NYT)
• Deutsche Bank Drops as Investment Bank Revenue Concerns Mount (BBG)
• Islamic State Uses Syria’s Biggest Dam as Refuge and Potential Weapon (WSJ)
• Goldman-run funds most popular with Republican candidates, disclosures show (Reuters)