Consumer confidence in the eurozone has deteriorated, with the economic sentiment indicator dropping in September. This has led to worries about weaker growth prospects and easing inflation concerns, putting pressure on the European Central Bank (ECB) to lower interest rates. The recent inflation data from Spain and France showed a significant decrease, leading to expectations of the first sub-2% eurozone inflation print for September. The drop in petrol prices and subdued core inflation are major concerns for the ECB.
In addition, German unemployment increased more than expected, with a rise in the number of unemployed people. This adds to the concerns about weakening labor market conditions and signals the potential for a rate cut at the ECB’s October meeting.
Meanwhile, billionaire Rupert Murdoch’s REA Group has made a fourth proposal to buy British property portal Rightmove for £6.2bn. The improved offer comes after previous rejections by the Rightmove board. Despite the board’s refusal to engage, REA is urging shareholders to support the deal, emphasizing the potential for growth and creating a global technology leader.
Inflation has also slowed in France and Spain, driven by declining energy costs and fuel prices. This has resulted in lower-than-expected inflation rates, causing Eurozone government bond yields to fall and increasing the likelihood of an interest rate cut by the ECB next month.
Overall, global markets are poised to end September positively, with Chinese stocks surging and a potential leadership change in Japan. These developments, along with ongoing concerns about inflation and economic growth in the eurozone, are shaping the current economic landscape.
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