The characterisation of Europe as “elderly and haggard” by Pope Francis is an accurate one, but on Dec. 4 the European Central Bank could lay the groundwork to try and revitalise the region's sagging economy. And though quantitative easing might be justified on inflation levels (prices are likely to weaken further on falling commodity prices)--Draghi clearly faces tough opposition within the ECB, hence QE hasn't happened yet.
On Friday, ECB President Mario Draghi delivered a damning indictment on the Eurozone economy, saying that underlying growth momentum remains weak, the economic situation in the euro-area remains difficult and that the inflation situation has become more challenging.
A funny thing happened last week: there were signs of a re-emergence of the sovereign debt crisis in the Eurozone, but the euro actually managed to eke out a gain against most of the G10 currencies including the pound and the U.S. dollar.
Bond bears recently discovered that conventional wisdom was flawed. The experts expecting higher yields at the start of a tapering regime never understood the difference, but equity traders did once they got over the shock.