20 July 2017 by lberuti
People spent the morning waiting for Mr Draghi to speak assuming it would dictate the price action for the rest of the day. During the last couple of weeks, the Bank of Japan intervened in the market to cap yields and Mrs Yellen delivered a dovish testimony which triggered to the latest risky asset. So, unsurprisingly, the ECB president did not deviate much and did not deliver any upset. He said the ECB would take a decision in the autumn on any change in its language on bond purchases. Credit indices hardly moved during the press conference, and the only scare eventually came from the US. News that a probe into Mr Trump’s business transaction with Russian counterparties was extended took a small dent in the market. But, ultimately, neither credit nor equities can be said to have cared hugely about any of this. Valuations are stretched, but that by itself is not going to make the market turn.