Wyn Thomas - Axys Investment Management

Weekly Market Update 11th March 2016

DRAGHI PLAYS HIS LAST HAND TO WARN OFF DEFLATION

The focus of attention this week was on efforts by central bankers to stave off a deflation trap. There was once a time when central banks all over the world were considered temples where oracles used their magic powers to prop up the global economy, however this belief has rather worn off now. European Central Bank president Mario Draghi continued his mandate of ultra-loose monetary policy much to the distaste of markets, as bourses tumbled and the euro surged higher. The general feeling that the ECB has drained its policy options and will be unable to protect the markets from another global shock is real. And we have not even discussed the fundamentals of low growth, low inflation and high unemployment in the trading bloc. Read More……