Mario Draghi talks up inflation

After successfully talking down the euro, Mario Draghi has now turned his attention to talking up the eurozone inflation rate. 

Mario Draghi
Source: Bloomberg

In order to succeed he will no doubt need oil prices to cooperate, but the 'all tools at his disposal' talk has more than a passing resemblance to his 'whatever it takes' game plan. It looks like European equity markets are going to struggle to make it a clean sweep for the week. After four days of steady improvements, equities look like they have finally run out of steam as red once again dominates trader’s screens.

ABN Amro’s IPO has allowed the Dutch government to claw back part of its €22 billion outlay for bailing out the bank during the banking crisis. George Osborne will no doubt take this as good news as investors appear eager to gain a greater exposure to the banks.

The bid speculation surrounding Imperial Tobacco has seen the company outperform all of the FTSE as traders assess the merits of either a bid from BATS or Japanese competitor Haque. Although this story has limited facts to back up the conjecture, in the city there is never smoke without fire. 

Ahead of the open we expect the Dow Jones to start 36 points higher, at 17,768.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.