Investors are assessing the divergent outlook between the United States and the euro zone.
The european bags are heading toward the close of their most successful week in two months, driven by the expectation that the European Central Bank (ECB) ends its cycle of increases andn interest rates and by indicators that suggest a possible recovery in the Chinese economywho was staggering.
The pan-European index STOXX 600which saw a 1.5% increase the previous day, advances 0.7% this Fridaywhich pointed to a weekly improvement of 2.1%, the most significant since mid-July.
However, in Wall Streetfutures indicated that the uptrend might not last as the mood in New York continued characterized by caution ahead of the next monetary policy meeting of the Federal Reserve that will be made next week.
Investors are assessing the diverging outlook between United States and the euro zone.
Global markets: the data investors look at
On Thursday, the European Central Bank (ECB) raised its official interest rate to the historic 4% and signaled that it would maintain this level until the problem of inflation above its target was addressed. Despite this, markets remained hopeful that, given the weakness of the euro zone economy, the ECB would wait for more evidence that its restrictive monetary policy had slowed the economy before considering cutting rates.
On the other hand, data on retail sales and industrial production in China for August exceeded economists’ expectationsalthough the deterioration of the real estate sector was worsening, which threatened to undermine the support measures implemented.
Meanwhile, bond yields in the euro zone rise after sharp falls the previous day, which indicated that debt investors have serious doubts about the prospects for ECB policy.
Source: Ambito
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