With the [European] central bank predictably keeping rates on hold attention turned to Draghi’s statement and subsequent Q&A. The Italian struck a more dovish tone than was expected, dismissing the Eurozone’s recent CPI growth, arguing that ‘there are no signs yet of a convincing upward trend in underlying inflation’, while stating that the ECB stands ‘ready to increase [its] asset purchases in size and duration if necessary’.

This was exactly what the euro didn’t want to hear, causing the currency to shed 0.7% against both the dollar and the pound, leaving it at a 10 day low against the latter...

In the UK the pound’s gains, though less robust against the dollar than they were in the immediate aftermath of Theresa May’s Davos speech, continued to suppress the FTSE, the index dropping by just shy of half a percent as the day went on. The FTSE wasn’t helped by the sharp declines seen by its key commodity stocks, as well as the substantial 5% drop incurred by Royal Mail following its disappointing third quarter report this morning.

Ahead of Donald Trump’s inauguration tomorrow the Dow Jones was relatively subdued, trickling 0.2% lower after the bell. As for the day’s data, the Philly Fed manufacturing index smashed expectations at 23.6, the highest reading in 2 and a half years, while at 234,000 jobless claims once again neared a 43 year low.