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.