25/12/2012
Markets Celebrate "Mario Draghi" Year and Remain Vigilant for Next Year
Financial markets began to rebound in 2012 with help from central banks, and now head into 2013 with hopes of economic growth in China and the United States while keeping a wary eye on the situation in the eurozone.
"In 2012, there will clearly be a 'before' and an 'after' Draghi," said Aurel BGC broker Jean-Louis Mourier in reference to European Central Bank (ECB) chief Mario Draghi.
Early in the year, tension on financial markets had spiked owing in part to the deterioration of the Spanish economy and the government's financial position.
But in late July, Draghi said that the ECB was "ready to do whatever it takes to preserve the euro," and turned the tide against speculators who were betting on a full-blown eurozone crisis.
In September, the central bank unveiled one of its most effective tools to date, a bond-buying programme dubbed Outright Monetary Transactions or OMTs to underpin the debt of countries that that have sought help from European rescue funds.
