Pantheon Macroeconomics - Markets initially applauded the ECB for its bold actions, but the tune has changed recently. Negative interest rates, in particular, have been vilified for their margin destroying effect in the banking sector. Our first chart shows that the relative performance of financials in the EZ equity market has dwindled steadily in line with the plunge in yields.

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4 August. 2016 Will the ECB Take The Markets' Hint on Negative Interest Rates?

By Claus Vistesen

Markets initially applauded the ECB for its bold actions, but the tune has changed recently. Negative interest rates, in particular, have been vilified for their margin destroying effect in the banking sector. Our first chart shows that the relative performance of financials in the EZ equity market has dwindled steadily in line with the plunge in yields.

Posted: 4th Aug 2016 in 'Eurozone Documents'

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