Wall Street to open lower after Draghi remarks…Schoenberger interviewed by Reuters
August 2, 2012 3 Comments
NEW YORK (Reuters) – U.S. stocks were set for a lower open on Thursday following a volatile premarket session which saw futures swing between gains and losses after comments from ECB President Mario Draghi disappointed investors.
After the ECB kept the main interest rate at 0.75 percent, Draghi said a mechanism will be drawn up the coming weeks to make outright purchases to stabilize stressed euro zone borrowing costs, within the mandate of the governing council.
After last week’s pledge by Draghi to “do whatever it takes” to save the euro, expectations for strong action had been raised considerably, putting intense pressure on the ECB president.
“Draghi didn’t say anything that excited us, and he set us up like a poker room full of suckers. Investors are angry, traders are angry,” said Todd Schoenberger, managing principal at the BlackBay Group in New York.