After last week’s series of high-impact economic reports, including the European Central Bank meeting and the Non Farm Payroll report, traders were looking forward to an opportunity to catch up on their Christmas shopping lists this week.
Mario Draghi and his European Central Bank colleagues disappointed the markets on Thursday by refusing to deliver what speculators were demanding. Ultimately, the ECB will have to do more to fight off deflationary threats; after all, it cut its own inflation and growth estimates at Thursday’s policy meeting.
Beijing is clearly getting nervous about the pace of growth in the world’s second-largest economy. This week the release of more important economic data will provide us with further insight into what is happening in the world’s second-largest economy.