ECB president Mario Draghi's support for Euro cheers markets

FRANKFURT/NEW YORK: European Central Bank president Mario Draghi signaled that officials are prepared to do whatever is needed to preserve the euro and act on surging bond yields that are tearing at the seams of the 17-nation currency bloc.

"To the extent that the size of these sovereign premia hamper the functioning of the monetary policy transmission channel, they come within our mandate," Draghi said during a speech in London on Thursday. "We have to cope with the financial fragmentation, address these issues."

"Within our mandate, the ECB is ready to do whatever it takes to preserve the euro," Draghi said. "And, believe me, it will be enough." The comments come as Spanish policy-makers call on the ECB to do more to fight a renewed bout of financial turmoil.

Spanish bonds rose after Draghi's remarks. The yield on the 10-year bond, which touched a record 7.69% on July 22, fell 14 basis points.

It was at 7.24% at 12:27 pm in Madrid. The euro also jumped and stocks rose. The single currency climbed as high as $1.2208 after trading at $1.2118 before he spoke.

The Dow Jones Stoxx 600 Index climbed almost 1%, rising as high as 252.83 points.

Wall Street rose more than 1% on Thursday, putting the S&P 500 on track to snap a four-day losing streak, after the European Central Bank chief pledged to save the Eurozone from collapse.

ECB President Mario Draghi said on Thursday the ECB would do what was necessary to protect the Eurozone, including fighting high bond yields.