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.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.