After the meeting of the European central bank, we can indicate that the new stimulus is more than necessary to boost the economy and get out of deflation. The ECB kept its deposit rate at minus 0.5 per cent and held its emergency bond-buying plan at €1.35tn in its latest policy.

ECB announced: “The new round of Eurosystem staff macroeconomic projections in December will allow a thorough reassessment of the economic outlook and the balance of risks. Based on this updated assessment, the Governing Council will recalibrate its instruments, as appropriate, to respond to the unfolding situation.”

This statement was disappointment for economists because many predicted the ECB would stay on hold now but add 500 billion euros to its bond plan today.

Ms Lagarde said that inflation will stay in negative territory because of low energy prices and a temporary German cut in value-added tax until the end of 2020. But once “a recovery in demand will put upward pressure on inflation of the medium term. “

European Commission sentiment index showed that the recovery in euro-area economic confidence came to a halt in October, even before the new restrictions. On the other side, Germany and France in the past 24 hours announced the lockdown what can change the direction of the economy. As stimulus weren’t announced, European indexes continues in decline.

Performance of the index Eurostoxx 600 (Source: Tradingview.com)