“An inactive ECB like the one we saw in early 2013 would set off markets instability,” state Afi’s analysts. Link points out that “equities and national debt, namely peripheral, would be strongly harmed unless ECB makes clear it will take steps.”
Frankfurter Allgemeine Zeitung reported Mr Draghi’s institution prepares a €40bn scheme to support SMEs in Southern Europe. Unusual measures in deflation fight and growth boost would be coming up. Considered tools are an interest rates reduction to nearly 0%, and negative rates for banks’ deposits in the ECB instead of offering credit to businesses and households.
Banca March highlights Draghi could foster BoE proposal for asset-backed securities (ABS) recovery.
Bankia experts believe not even the May EZ PMI manufacturing index, the IPC estimate for this month nor the unemployment rate in April will alter the scenary appreciated by market makers. EZ recovery remains quantitatively too mild and unbalanced in countries like France. Interest rate is likely to drop to 0.15bp, deposit facility would remain negative and financing program for SMEs would be set aiming at reducing differences between european companies.
Global indexes in upcoming months will be influenced by prospects obtained from 1S corporate results.