Back to top

Real Time Insight

Wednesday IMF head Christine Lagarde urged the European Central Bank to stave off deflationary pressure. Lagarde said “More monetary easing, including through unconventional measures, is needed in the euro area.” She went on to comment about the current recovery in Europe, “In the euro area, a modest recovery is now taking hold, stronger in the core and still very weak in the south. There are encouraging steps we have seen in the last few months, the establishment of a banking union.”

These comments came on the heels of euro zone inflationary data that marked the sixth consecutive month of sub-1% numbers. Draghi followed up yesterday at his monthly ECB press conference, “We don’t exclude further monetary-policy easing” stating that the ECB is prepared to “Act swiftly if required.” The ECB board has been discussing the possibility of large-scale bond purchases and even negative interest rates.

While the language has changed across the pond to be about as dovish as you can be without doing anything, they still haven’t committed to doing anything. My question is what would force the ECB into action? Rates spiking on Italian and Spanish debt? A sub 0.5% inflation reading?

Six months in a row of numbers inside the ECB admitted “danger zone” have the IMF head and ECB President up at arms. What else would they need to see to get something to happen?

I think another month or two below 1% would be enough to at least outline steps the ECB could take to ease fears of deflationary pressure. Let me know your take on things.

Zacks Releases Their 7 Best Stocks for September, 2014

These 7 were hand-picked from the list of 220 Zacks Rank #1 Strong Buys with earnings estimate revisions that are sweeping upward. Their stock prices are expected to rise sooner than the others.

Today, this Special Report is available to new visitors free of charge.

Close This Panel X

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%