European markets cheered dovish words by Mario Draghi at the start of the week, after the president of the European Central Bank (ECB) delivered a wide-ranging speech which many deemed to mark a key turning point in rhetoric.
Draghi's comments, at the Jackson Hole meeting of central bankers in Wyoming on Friday, raised expectations of further policy easing by the central bank. Hopes of further stimulus pushed stocks in Europe higher on Monday.
The euro, meanwhile, stumbled to 1.3189 against the dollar - a level not seen since September 2013. German sovereign bond yields also eased lower amid expectations that the ECB could begin a major asset-buying program.
"This could actually go down as one of the major speeches by Draghi, signaling another potential policy shift that is in the making," Christoph Rieger, head of fixed-income strategy at Commerzbank, told CNBC on Monday morning.
Taking the stage after U.S. Federal Reserve Chair Janet Yellen on Friday, Draghi's words on weak inflation in the region were of particular interest to analysts. Notably, the ECB President bulked out his speech and drifted away from pre-prepared comments.
Draghi cited the risks of a further drop in euro zone inflation, which stood at just 0.4 percent in July, and said the bank would use all available instruments within its mandate to ensure price stability over the medium term. He also highlighted that market-based long-term inflation expectations had recently fallen.