Markets Slide On Worsening Global Growth Outlook, All Eyes On Draghi

Zero Hedge | 3/9/2009 | Staff
vpp1219 (Posted by) Level 3
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World stocks were stuck in their worst run of 2019, declining for a fourth straight day their longest losing streak since December’s rout, as global markets dropped and US equity futures slumped with the EMini pulling further away from the "quad resistance" at 2,800 amid renewed concerns about global growth after the OECD downgraded almost every growth outlook for G-20 nations, as investors waited for confirmation that, as Reuters diplomatically put it, "the ECB will start shoveling cheap cash at the euro zone again" when it cuts its growth and inflation forecasts again.

“We’re seeing a slowdown in the economy, we’re seeing a slowdown in corporate earnings,” Oliver Pursche, chief market strategist at Bruderman Asset Management, told Bloomberg TV in New York. “The market is waiting to see if things are going to turn out better or worse than they expect, and we just don’t know.”

Shares - Highs - Stoxx - Europe - Index

European shares retreated further from five-month highs after the Stoxx Europe 600 Index slid ahead of what is widely expected to be a rather dour ECB meeting where the highlight may be the announcement of further stimulus to the economy through a new round of bank funding, the so-called TLTRO program. The Stoxx 600 was dragged lower by the trade-proxy mining and auto sectors, although the move was exaggerated by several stocks trading ex-dividend, such as Rio Tinto, BHP Group and Roche Holding. The defensive telecoms, utilities and food sectors once again outperformed.

A return to what was once its flagship crisis-fighting tool would be a wrenching change of direction for the ECB just months after it wound down its 2.6 trillion euro QE program, but Head of investments at UK fund manager Hermes, Eoin Murray, said he wondered how much impact such measures, or even more U.S. Fed stimulus, would have, considering the potency has tended...
(Excerpt) Read more at: Zero Hedge
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