Euro zone recovery to continue thanks to ECB stimulus: Draghi
The euro zone recovery has withstood economic and political uncertainty and its recovery expected to continue, partly thanks to the European Central Bank's monetary stimulus, ECB President Mario Draghi said on Monday.
"The euro area economy continues to expand at a moderate but steady pace, despite the adverse effects of global economic and political uncertainty," Draghi told an EU Parliament committee.
"This gradual upward trend is expected to continue, not least owing to our monetary policy measures."
ECB’s Mario Draghi Warns of Risks of Prolonged Low Interest Rates
European Central Bank President Mario Draghi issued a blunt warning over the risks that low interest rates pose to the eurozone’s €10 trillion ($10.6 trillion) economy—just as the ECB prepares to decide whether to hold rates down for longer.
The warning underlines the dearth of policy choices central banks face as they seek to further stimulate their economies after years of aggressive easy-money policies.
Speaking at the European Parliament in Brussels on Monday, Mr. Draghi said a lengthy period of low rates had created “fertile terrain” for financial-market risks, including a buildup of debt and excessive risk-taking.
ECB’s Mario Draghi and Brexit
Draghi said Britain would bear the brunt of the economic damage if Brexit created a UK economy with lower migration and weaker growth in trade and investment.
He told MEPs: “We are looking for a concept by the UK government where it would share its views and plans with its own citizens, and see what they say about that, before we can actually express our views on this.”
Oil up, trade choppy as OPEC makes last-ditch bid to save deal
Oil prices gained more than 2 percent on Monday in volatile trading after falling as much as 2 percent, recouping losses as the market reacted to the shaky prospect of major producers being able to agree output cuts at a meeting on Wednesday.
U.S. West Texas Intermediate crude futures CLc1 settled up $1.02, or 2.21 percent at $47.08 a barrel. Brent crude LCOc1 rose $1.00, or 2.12 percent, to $48.24 a barrel.
In post-settlement trading, oil futures pared gains after Reuters reported that OPEC experts did not agree on the details of a deal to cut output.
Trading was choppy after prices tumbled more than 3 percent on Friday as doubts grew over whether the Organization of the Petroleum Exporting Countries would reach agreement to help curb a global supply overhang that has more than halved prices since 2014.
Reference : Reuters, The Guardian, The Wall Street Journal
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