The central banks are finding it difficult to boost growth by increasing domestic demand and hence the need to depend upon foreign demand. The progressive rate cuts and monetary easing measures have led to massive falls in these currencies thereby helping these countries to increase exports.
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Cyclicals lead Wall St. higher; Dow, S&P end at records
U.S. stocks rose on Wednesday, with both the Dow and S&P 500 ending at records, as data pointed to improving conditions in the U.S. services sector, boosting cyclical stocks.
Euro zone risks return to contraction, China outlook smoggy
The euro zone economy may face another contraction after business activity grew less than expected in November despite heavy discounting, surveys on Wednesday showed, although Asian readings were more upbeat.
QE or not QE? Spotlight on the ECB as inflation dips
The ECB's monthly rate meeting will focus minds this week on the debate over quantitative easing in the euro zone, as a series of data releases on both sides of the Atlantic sheds more light on European woes and U.S. strength.
Ahead of rate meeting, ECB's Lautenschlaeger sees very high hurdles to more easing
ECB Executive Board member Sabine Lautenschlaeger said on Saturday she saw little room for further easing of monetary policy despite a further fall in euro zone inflation.
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The countdown has begun to what threatens to be a missed opportunity to revive Europe's stalled economy. When European Union leaders meet on Dec. 18-19 under new management, they have a chance to launch a joint assault on the economic stagnation and high unemployment that are fuelling disenchantment and anti-EU protest among voters.
European stocks were set to open slightly higher on Monday, adding to Friday's sharp rally sparked by dovish comments from European Central Bank President Mario Draghi and a surprise interest rate cut in China.
European Central Bank President Mario Draghi threw the door wide open on Friday for more drastic measures to prevent the euro zone from sliding into deflation, promising to use whatever means necessary as China also acted to boost its sagging economic growth.
While the fall in the oil prices is generally regarded as positive for many businesses, it has a major influence on inflation expectations, interest rates and bond prices at the global level.
With US Fed likely to increase the interest rates by mid 2015 and ECB and BoJ keeping their monetary policy accommodative, there could be major capital flows from euro area and Japan into the US and thereby leading to further strengthening of the US dollar.
Mario Draghi, President of the European Central Bank gave introductory remarks at the EP’s Economic and Monetary Affairs Committee on 17th November 2014. He mostly spoke about the ‘relationship of financial fragmentation and monetary policy’ and the ‘Eurosystem’s collateral framework’.
Japanese shares led a tentative recovery in Asian shares on Tuesday, drawing some support from two U.S. blockbuster acquisitions and anticipation of more European monetary stimulus.
The positive news on German and French GDP have calmed the fears over stagnating Eurozone economy. the International Monetary Fund said that growth performance is in line with projections in the United States and China. BoE Governor Carney lowered growth and inflation forecasts for UK. Japan's GDP data will be a very crucial factor in Prime Minister Abe’s decision on whether or not to increase the consumption tax from 8 percent to 10 percent.
A large group of professional forecasters cut their outlook for euro zone inflation and growth, underlining a trend that could prompt the European Central Bank to take more policy action to kick-start the region's flagging economy.
