After a head-spinning bout of volatility, next week will be dominated by one question: Will the European Central Bank take the ultimate policy leap or pull its punches?
Tags: Euro zone
Greek turmoil an unexpected boon for German AfD eurosceptics
The new Greek government's anti-bailout stance has sent shudders through much of Europe but Germany's euroskeptic AfD party can hardly believe its good fortune ahead of a regional election as a breakup of the euro zone suddenly appears possible.
Far-left victory in Greece bruises European markets
European shares fell and borrowing costs for the euro zone's most indebted states rose on Monday as the leftist Syriza party looked set to take on Greece's international lenders after a crushing victory in early elections.
Bundesbank's Weidmann casts doubt on effectiveness of ECB's QE
Bundesbank President Jens Weidmann, an unabashed critic of the European Central Bank's quantitative easing (QE), told a German newspaper on Sunday he had doubts about the effectiveness of the ECB bond-buying plan.
Italy cheers ECB bond buying plan, sees big boost to economy
The European Central Bank's bond buying program will give a decisive boost to Italy's stagnant economy, business lobby Confindustria said on Saturday, while the Bank of Italy said it would make it easier to pass reforms.
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The number of Americans filing new claims for unemployment benefits fell last week and job cuts declined sharply in December, suggesting the labor market is tightening.
Euro zone economic sentiment was unchanged in December against the previous two months, data showed on Thursday, as a more upbeat end-of-year mood in the services and retail sectors and among consumers was offset by a gloomier industry.
The euro hit a nine-year trough on Wednesday as collapsing oil prices and worries about the world economy drove skittish investors into the arms of safe-haven sovereign debt.
The euro zone economy ended 2014 with its worst quarter for over a year as further price cutting failed to significantly drive up business activity, adding pressure on the European Central Bank to act, surveys showed.
The euro slumped to a nine-year low on Monday as investors bet that the prospect of inflation across the region turning negative and mounting political uncertainty in Greece will force the European Central Bank to unleash quantitative easing.
Greek leftwing opposition leader Alexis Tsipras said the European Central Bank (ECB) could not exclude Greece if it decides to move to a full "quantitative easing" program to stimulate the euro zone's faltering economy.
Asian markets were set for a cautious close to 2014 on Wednesday as worries about Greece's future in the euro zone served as an excuse to take profits on popular trades.
European shares and periphery euro zone bonds tumbled on Monday after the Greek parliament rejected the government's presidential candidate, setting the stage for an election that anti-bailout party Syriza could win.
Greece's future in the euro zone may hang in the balance once more, but investors believe the market fallout from any current political turbulence can be insulated, unlike during the region's sovereign debt crisis of 2012.
