The standoff between Russia and
the European Union is hurting the outlook for Germany. Europe’s biggest
economy may have contracted for the first time since 2012 in the second
quarter. We get Germany’s GDP data on Thursday, but Bob Doll, chief equity strategist at Nuveen Asset Management says Europe was fragile to begin with and then the standoff happened.
“As you know even prior to this,
Italy was dipping back into recession, we’ve got some macro-economic
numbers out of Germany that have been on the weak side, and so Europe is
just kind of muddling through at best,” he says.
Doll adds quantitative easing
may “not be out of the question, Mario Draghi recently hinted at that at
some point, should Europe need it. Which should be a good help for risk
assets (stocks) in Europe.” The ECB President recently said policy
makers are willing to use unconventional measures including QE if
needed.
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