Oops, Draghi did it again

From valenciaplaza.com | The president of the European Central Bank, Mario Draghi, fulfilled one more time what has become an uninspiring habit in relation to European equity markets and particularly in regard to the Spanish Ibex 35. Madrid closed Thursday with sharp declines again after the words of the Italian banker in the press conference that followed the meeting of the governing council of the central bank.

In fact, the Spanish stock market ended the session on Thursday with a slump of 3% that brought it to fall under the 7,000 psychological point level, investors being disappointed by the lack of news from the ECB beyond the rate cut of a quarter point, leaving the euro rate at 0.75 percent.

This s

eems no coincidence. Draghi's speeches and the collapse of the Ibex could well be considered anecdotal, if it weren't for a visible pattern fairly common in the brief career of the Italian banker at the helm of the ECB.

Since taking office in November, Draghi has chaired nine meetings of the governing council of the ECB. Of all of these nine occasions, in seven the Spanish index ended the session well below the levels recorded before knowing the words at the press conferences of president of the ECB. Look what happened the last time.



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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.