Credit Suisse Believe ECB Will Announce QE Next Week

With the euro zone starring down the barrel of negative growth and weak demand, several market-watchers have placed their bets on whether Mario Draghi, president of the European Central bank (ECB), will announce more stimulus next week and push stocks another leg higher in the process.

Credit Suisse analysts were the first to throw their hat in the ring. They predicted in a research note Monday that Draghi will make an “explicit announcement” on a large-scale bond-buying program, commonly called quantitative easing or “QE”.

This would include the buying of sovereign debt, they added, and boost market confidence into year-end. Peter Oppenheimer, the chief global equities strategist at Goldman Sachs, has a base case scenario for a QE announcement early next year, but is expecting a 365 point rise for the Euro Stoxx 600 Index in 2015 with returns of 25 percent.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza