European stocks declined on Thursday despite Draghi press conference pep talk in which the ECB president predicted recovery later in 2013. European Central Bank president Mario Draghi failed to motivate investors on Thursday, as the major European stock indices posted declines after the Draghi press conference (NYSEARCA:VGK).  In explaining the rationale behind the ECB’s decision to hold its benchmark interest rate at 0.75 percent, Draghi was forced to admit that “the economic weakness in the euro area is expected to extend into 2013.”  Draghi attempted to inspire optimism with his assurance that the ECB’s efforts to strengthen bank balance sheets and implement market reforms would improve the outlook for growth later in the year.  Nevertheless, the European stock indices dipped into the red after Draghi’s presentation.  On the other hand, the euro surged well beyond one percent against the dollar (NYSEARCA:FXE). In France, INSEE reported that manufacturing output increased by 0.2 percent in November and output in industry as a whole rose by 0.5 percent on a month-over-month basis.  Unfortunately, on a year-over-year basis, manufacturing output declined by 3.6 percent (NYSEARCA:EWQ). As of 11:16 EST, the Euro STOXX 50 Index declined 0.14 percent to 2,702 – staying well above its 50-day moving average of 2,581.  The STOXX 50 is holding above its March 19 high of 2,608 and its Relative Strength Index is 67.27 (NYSEARCA:FEZ).  The FTSE 100 Index fell 0.13 percent to 6,090 (NYSEARCA:EWU).  The German DAX Index declined 0.39 percent to 7,690 (NYSEARCA:EWG).  France’s CAC 40 Index dropped 0.62 percent to 3,694 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index crept upwards by 0.02 percent to 8,608 (NYSEARCA:EWP).  Italy’s FTSE MIB Index advanced 0.59 percent to 17,428 (NYSEARCA:EWI).   Europe Doubles S&P Performance Over the Last 6 Months As of 11:22 EST, the euro advanced 1.11 percent against the dollar, trading at $1.3212 (NYSEARCA:FXE). Spain’s ten-year bond yield dropped to 4.89 percent on Thursday from Wednesday’s closing level of 5.12 percent.  Spain’s two-year bond yield sank to 2.10 percent on Thursday from Wednesday’s closing level of 2.39 percent (NYSEARCA:EWP). Italy’s ten-year bond yield declined to 4.20 percent on Thursday from Wednesday’s closing level of 4.29 percent (NYSEARCA:EWI). On London’s ICE Futures Europe Exchange, March futures for Brent crude oil advanced by 56 cents (0.51 percent) to $111.43/bbl. (NYSEARCA:BNO, NYSEARCA:USO). February Gold futures advanced by $20.60 (1.24 percent) to $1,676.10 per ounce (NYSEARCA:GLD).   Gold as a Weapon in the Currency War China’s Customs Administration reported that the nation’s trade surplus increased by 48 percent in 2012 on an annual basis.  China’s foreign trade increased by 6.2 percent during the year, with exports rising 7.9 percent and imports rising 4.3 percent.  The Shanghai Composite Index advanced 0.37 percent to 2,283 (NYSEARCA:FXI).  Hong Kong’s Hang Seng Index climbed 0.59 percent to 23,354 (NYSEARCA:EWH). In Japan, stocks continued their advance as the yen declined, following the continued efforts by Prime Minister Shinzo Abe to make the case for the 2 percent inflation target which Abe had frequently discussed during his election campaign (NYSEARCA:FXY).  The Nikkei 225 Stock Average advanced 0.70 percent to 10,652 (NYSEARCA:EWJ). American stock index futures were in positive territory ahead of Thursday’s opening bell following Mario Draghi’s discussion of the outlook for economic growth in Europe.  The March 13 Dow Jones Industrials future advanced 0.38 percent to 13,376 as of 9:14 EST.  The March 13 S&P 500 future climbed 0.52 percent to 1,463 (NYSEARCA:SPY).  The March 13 Nasdaq 100 future climbed 0.68 percent to 2,740. Bottom line:   European stocks declined and the euro soared after ECB President Mario Draghi’s press conference, in which he discussed the reasons for holding the benchmark interest rate at 0.75 percent.   Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator!    Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.