By John Foley
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The prospect of dramatic European Central Bank action – coupled with the deflationary threat posed by a plunge in the price of oil and the pain it inflicts on oil producing countries – is putting the financial system under growing stress.
Euro zone service sector PMI readings for December are unlikely to alter European Central Bank thinking about taking the ultimate policy leap and commencing a quantitative easing government bond-buying programme, possibly at its Jan. 22 meeting.