- Thursday saw a little increase in European stocks as investors prepared for the first interest rate increase by the European Central Bank in 11 years. At the same time, Russia started exporting gas to Europe through a crucial pipeline, allaying investors' biggest fears.
- Following the resignation of Mario Draghi as prime minister of Italy, the Stoxx Europe 600 index and the euro recovered losses. While contracts for the Nasdaq 100 barely changed, those for the S&P 500 declined. Treasury yields increased, sending the benchmark 10-year rate beyond 3%.
- Just before the ECB introduces its new crisis management tool to protect the most vulnerable eurozone countries from market speculation, Italy's political unrest increases pressure on it. With Thursday's monetary policy decision, a period of zero rates that aided the region's economies through the global financial crisis, the collapse of sovereign debt, and the subsequent pandemic in 2020 will come to an end.
- The prospects for the European markets are very, very bright if the ECB's tool is successful in leveling the playing field for nations with higher borrowing costs and Russia maintains gas exports, according to Andrew Sheets, the chief cross-asset strategist at Morgan Stanley.
