Markets remain upbeat after ECB ‘watershed’

Markets continue to react positively to the comments made a few weeks back by ECB president Mario Draghi that the institution will do whatever it takes to keep the single currency together.

“The markets are now taking the view that this has been a ‘watershed’ moment in the eurozone debt crisis,” says John Mennis, a London-based stockbroker with the investment firm Investec.

“The fear all along in the markets was that the EU authorities didn’t understand the nature and the scale of the problem. Draghi’s speech has brought an air of calm.” On Jul 26 Mr Draghi told an investment forum in London that the ECB would do “whatever it takes to preserve the euro.”