Inflation woes drag on Draghi, European and Arabian markets - Business Middle East

Описание: Business Middle East is our new weekly programme examining a major economic issue in this crucial global region and assessing the world economy's overall influence on it.

In this edition we look closely at how the upcoming European Central Bank´s decisions could affect the Arabian markets.

September 4 is a decisive day, not just for European but also Arabian markets, both of which have been struggling since June.

Investors are placing huge expectations on ECB chief Mario Draghi.

Pressure is growing on the ECB to take serious measures to stop inflation decline.

In June, the ECB became the first major central bank to use a negative deposit rate. After reducing the benchmark interest rate to a record-low 0.15 percent.

European markets rallied, gaining more than one percent.

Despite the ECB's policy easing these gains were temporary. The markets suffered from substantial selling pressure in July and recovered some of these declines in August.

In the Middle East analysts and investors were banking on a
positive reaction, however those markets tumbled significantly in June due to geopolitical tensions.

But a recovery has been seen throughout July and August.

Investors' attentions are shifting to Frankfurt this week amid speculation new measures could be announced.

All eyes will be on Mario Draghi's forthcoming press conference, which may include notable changes to current policy that could impact on the markets in the near future.

To shed light on these issue euronews' Daleen Hassan spoke to ADS Securities' chief market strategist Nour Aldeen Alhammoury in Abu Dhabi...

READ MORE: http://www.euronews.com/2014/09/02/in...

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