writes:
With volatility easing in Europe, another session with Mario Draghi probably wasn?t the first thing stock investors wanted on their calendars this week.
Equity swings exploded and lenders slumped after last month?s European Central Bank conference as Draghi failed to convince investors that he had a strategy to avoid deflation. They won?t get much more clarity tomorrow, according to Goldman Sachs Group Inc., which predicted in a note last week that Draghi will appeal for time to let his policies work.
Two years of relative calm for European shares was shattered in October when Draghi stopped short of setting a precise target after saying the ECB would expand its balance sheet, leaving markets concerned he will face obstacles in plans to spur growth. Volatility spread to the rest of the world as the MSCI All-Country World Index extended a retreat that began in July to as much as 9.6 percent.
?He played a dangerous game in coming forward without a detailed program,? said Francois Savary, chief investment officer of Reyl & Cie. in Geneva. ?There?s a lot of focus on the next meeting because people have started doubting whether there is enough liquidity to actually support the system in Europe. The market wants a reaction.?
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