Economics
Draghi's QE Dispenses Unwanted Results to European Stock Buyers
- All but 2 in Euro Stoxx 50 have lower valuations versus March
- What else will it take, asks Morgan Stanley's Graham Secker
Is Draghi's ECB QE Reset Enough to Help Europe?
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Mario Draghi’s stimulus program hasn’t quite succeeded at unleashing the desired animal spirits across Europe. Here’s the evidence: six months in, and 96 percent of companies in the Euro Stoxx 50 Index have actually gotten cheaper relative to earnings.
The European Central Bank’s plan to flood the financial system with cash by purchasing bonds was supposed to ignite the same celebration of risk-taking it did in the U.S. six years ago. In fact, the opposite has happened, culminating in as much as $526 billion of share values being wiped out last month.