Central bank response

At its monetary policy meeting in September when the Euro-pean Central Bank (ECB) once again introduced new record levels of monetary easing, Mario Draghi, President of the ECB, criticised the politicians for not having done enough in terms of reforms.

The euro continued declining in response to the prospect of continued negative interest rates in the eurozone. And probably also on account of a number of disappointing euro-zone economic indicators – especially German industry is struggling with low order intake and a car industry crisis. 

U.S. election campaigns are approaching, and Donald Trump needs continued good news from the U.S. economy to stand a chance of re-election. As Mr Trump has defined S&P 500 returns as a measure of success, we can probably expect a number of equity-friendly measures from the White House over the next 12 months when election campaigns will be in full force.

So writes Chief Strategist at Sparinvest David Bakkegaard Karsbøl in his latest monthly report.

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