Continued weak numbers coming out of the eurozone, however, has convinced people that Mario Draghi, the president of the European Central Bank, is going to have to give in and resort to a greater amount of monetary easing, even moving to something he has rejected so far -- quantitative easing.
The European nations seem to be experiencing a growth rate of about 1% this year. Expectations for growth next year and for the after seem to be hung up below 2%.
Disinflation continues to be the big news of the day as the estimated rate of price increase for July announced by Eurostat, the European Commission's statistical bureau, came in at an annualized rate of 0.4%. This is down from 0.5% for June. Expectations are for a further fall for vacationing Europeans in August, maybe only 0.3%.
This information apparently got translated into European stock markets as averages experienced a substantial drop on Thursday.
The Federal Reserve, on the other hand, seems to be moving in the opposite direction. The Open Market Committee of the Fed, which ended its two-day meeting on Wednesday, reduced the amount of securities it was purchasing monthly to $25 billion and there were indications that some of the more "hawkish" members of the committee were pushing for a rise in short-term interest rates, sooner, rather than later.