Markets still believe whatever Mario says

ECB President, Mario Draghi, gave global markets an additional boost with his carefully crafted hints that Eurozone QE is just around the corner. As he testified to the European Parliament, he said “Other unconventional measures might entail the purchase of a variety of assets, one of which is government bonds.”  This would be a major ramp up in stimulus operations which already have lofty ambitions at EUR 1 trillion but lacking a target market capable of swallowing that amount of buying. Nevertheless, speculation is now rampant about which sovereign bonds might be targeted, and the associated downward pressure on yields is superficially good for equities in Europe and beyond, particularly the UK. The FTSE 100 extended it's recovery from the October lows to close over 6,700.