ECB Feeling Pressure to Launch QE After Eurozone Consumer Prices Fall

Markets got a perverse boost from European data that showed consumer prices fell in December for the first time since 2009. This increases pressure on the European Central Bank to provide more stimulus for the region's flagging economy. IG strategist Stan Shamu said, 'Equities are enjoying some relief as investors react to the prospect of further central bank easing, with the ECB in focus.' Many analysts expect the bank to announce a plan to buy government bonds this month, a move called 'quantitative easing' that is meant to make borrowing cheaper. The ECB's policymaking governing council meets on January 22 and many investors think that a bond-buying program, will be announced then.