Historic losses for Europe after ECB underwhelms

  • The Stoxx 600 (NYSEARCA:FEZ) German Dax (NYSEARCA:EWG), and French CAC 40 (NYSEARCA:EWQ) all posted record percentage losses today, down 11.5%12.25%, and 12.3%, respectively.
  • Italy (NYSEARCA:EWItumbled 17% and Spain 14%. The U.K. fell 10.9%.
  • Needless to say, it was probably going to be a rough day in Europe already, but newish ECB boss Christine Lagarde likely made a pretty big flub, saying it "wasn't the mission of the ECB" to try and narrow bond spreads." She later kind of backed away from those remarks, but the damage was done - Italian 10-year yields soared nearly 60 basis points to 1.75%; Spanish 10-year yields rose 22 basis points to 0.46%.
  • In addition, the ECB decided not to move on interest rates, but did agree to temporarily boost its QE program.
  • Related ETFs: VGK, FEZ, HEDJ, EZU, IEV, IEUR, EPV, EURL, SPEU, DBEU, EEA, HEZU

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