Gavekal Capital: Let's Review & Reactions to ECB's Interest Rate (Non)Decision

Thursday, April 3, 2014

Let's Review & Reactions to ECB's Interest Rate (Non)Decision

Earlier this week, we saw data releases for consumer prices and unemployment in Europe:

This morning, Draghi announced that key rates would remain unchanged while affirming the ECB's commitment to 'consider all instruments available' in order to cope with 'lowflation' in the Eurozone. The EUR/USD exchange rate quickly fell:

French and Italian bonds also fell sharply versus their German counterpart before rebounding, while Spanish yields declined more gradually:

Meanwhile, gains in stocks were mixed/ short-lived:

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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