European bonds would go to -0,6% and the PER of Eurozone MSCI would rise 5/10% with new QE

Mind The European VAT GapImplementing VAT reforms to enhance fiscal consolidation is particularly pertinent in the euro area

ECB records were published which caused discussions about further rate cuts and a new round of QE. Morgan Stanley analysts have been most vocal over QE anticipating that with the current inflation data the ECB is likely to use all the tools it has in reach.

“Our macro analyst Daniele Antonucci anticipates 45Bn€ per month, with a remote possibility that it will increase to 65Bn€ per month and will include ETFS and banking sector bonds. In this “bull case” he anticipates that European bonds could go to -0.6%. The PER for Eurozone MSCI would rise 5/10% and the spread on corporate bonds, especially banking bonds, would narrow. In addition, there would be a change of the guard in sectoral performance with the cyclical shares in the lead. This is what has happened with previous announcements of QE,” they commented.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.