Looking ahead to the future of European and global markets from Anshuman Daga
Will business activity take a double whammy after latest data confirm fears of runaway consumer price hikes in the euro zone?
While ECB board member Isabel Schnabel did not rule out 19 a technical recession in the country in an interview with Reuters last week, the Eurozone PMI Preliminary readings will be closely watched this week for recession risks.
August data due on Tuesday could show that the final composite PMI index fell in July following S&P Global (NYSE: SPGI) to 17 month lows.
Any further weakness could bring more bad news for the euro as it fell to a fresh five-week low on Monday.
High energy prices and shortages have put pressure on euro area businesses.
In the latest blow, Russian state energy giant Gazprom (MCX: GAZP) said it would stop sending Europe supplies natural gas for three days.
Natural gas prices in Europe are already near five-month highs. Europe is racing to refuel ahead of winter.
UK and US PMI data will also be released on Tuesday.
Economists polled by Reuters expect the Federal Reserve to raise interest rates in September amid expectations that inflation has peaked and recession fears mount 50 basis points, but who said the risk is skewed towards higher peaks.
Chart: Reuters Polling – U.S. Recession Probability – https://fingfx.thomsonreuters.com/gfx/polling/egpbkdwndvq/Reuters%20 Poll – % 20 U.S. % 20 Recession % 20probabilities.PNG
The main news of the day was that China cut its benchmark lending rate on top of last week’s easing measures as Beijing fully To revive an economy hobbled by the housing crisis and a resurgence of COVID-19 cases.
Growth pains kept Asian stocks subdued on Monday, while jitters over China’s economy dragged the yuan to 23 month lows.
Key developments likely to affect markets Monday:
China lowers lending benchmark to revive faltering economy:
Nord Stream 1 pipeline to be closed for three days, latest fuel blow to Europe:
Asian stocks down:
50
