Consumer confidence in the eurozone has taken a hit, with the economic sentiment indicator dropping from 96.5 to 96.2 in September. This decline has been attributed to weaker growth prospects and easing inflation concerns in countries like Spain and France. With inflation slowing in both of these countries, there is speculation that the eurozone could have its first sub-2% inflation print for September. The European Central Bank is feeling dovish pressure to address this situation, especially with weaker than expected growth across the region.
In Germany, unemployment has risen more than expected, with the seasonally adjusted number of unemployed people increasing by 17,000 to 2.82 million. This weakening labor market is further contributing to concerns about economic growth in the eurozone, prompting discussions about a possible rate cut by the ECB in October.
Other key events in the market include Rupert Murdoch’s REA Group submitting a fourth proposal to buy British property portal Rightmove for £6.2bn, and potential suitors bidding to buy The Daily and Sunday Telegraph newspaper. In addition, inflation has slowed in France and Spain, with both countries reporting lower than expected inflation rates in September.
Overall, global markets are set to end September on a high note, with Chinese stocks experiencing their best week since 2008 after a round of stimulus measures were implemented to boost the economy. Markets across Asia and in the US are seeing positive gains, with optimism surrounding potential economic recovery efforts.
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