(CercleFinance.com) – The European stock markets began the week in gloom (-0.8% in London, -0.9% in Frankfurt and Paris), against the backdrop of an index illustrating the depression experienced by German economy, heavyweight in the euro zone.
The Ifo business climate index in Germany rose from 85.8 in August to 85.7 this month, a level certainly higher, according to Capital Economics, than the market consensus (85.2), but lower than its own forecast (86).
Considering that the index ‘confirmed that the German economy remained in the doldrums in September’, the London analysis office continues to expect GDP contractions for the last two quarters of this year.
‘The massive rise in key rates also portends a recession’, warns Commerzbank, which also points to ‘the high level of uncertainty among businesses regarding the government’s economic policy’.
Traders still need to take note of many other statistics in Europe this week, including economic sentiment indices from Brussels and a quick estimate of inflation in the euro zone.
In the United States, the coming days will notably see the publication of a final estimate of growth in the second quarter, then household income and spending for September – accompanied by a PCE price index closely monitored by the Fed.
In stock news, Aperam fell by almost 6% in Amsterdam in heavy trading volumes, following the warning launched Friday evening by the stainless steel producer on its third quarter results.
On the other hand, Bpost jumped 10% in Brussels, the postal operator having been able to reassure investors with its latest comments on compliance examinations, notably with a much lower provision than what the market anticipated.
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