Weekly Impressions - Super Mario to the resuce? Not just yet.

At the latest ECB press conference, Mr Mario Draghi flagged that the central bank would need to re-assess its monetary policy stance at the next meeting in early March because euro area inflation dynamics continue to be weaker than expected. At the same time, Mr Haruhiko Kuroda has acknowledged that inflation expectations in Japan remain somewhat weak and that decisive action is necessary to rid Japan of its fifteen year long deflationary mindset. In the past month, investors have clearly been unnerved by renewed concerns around persistent disinflationary headwinds in the euro area and Japan, China's growth prospects, and the FOMC members' projections pointing to at least three hikes to the federal funds rate over the course of 2016. With Messrs Draghi and Kuroda signalling that more stimulus is on the way, and increased likelihood that the FOMC participants will have little choice but to downgrade their projections for the federal funds rate as the IP cycle in the United States tips over, Evidente recommends investors have a tactical overweight bet in global equities. (VIEW LINK)


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