02/10/13 – Market Movements

President of the European Central Bank (ECB) reiterated that interest rates would remain at 0.5% in the Eurozone and mentioned that the economy is still fragile and weak.  He commented that the bank is willing to use “all available instruments” to keep market interest rates low and that rates were likely to remain low for an “extended period”.    It is worth noting however that the data which has been coming out of the Euro area is showing slow signs of progress towards a recovery.  Draghi is essentially using forward guidance to avoid speculation, which has been most recently seen in the U.S and caused chaos in the markets.