Consumer confidence in the eurozone has worsened, with the economic sentiment indicator dropping from 96.5 to 96.2 in September. This decline, along with softer inflation data from Spain and France, suggests a turning in eurozone sentiment, putting dovish pressure on the European Central Bank (ECB) to lower interest rates. With weaker growth prospects and easing inflation concerns, the focus of policymakers is shifting from inflation to growth worries, potentially leading to a rate cut by the ECB in October.
In Germany, unemployment rose more than expected, with a seasonally adjusted increase of 17,000 to 2.82 million. This weakening labor market trend is expected to continue, adding to the pressure on the ECB to consider lowering interest rates.
Billionaire Rupert Murdoch’s REA Group has raised its bid to buy British property portal Rightmove to £6.2 billion, urging the Rightmove board to engage. Despite three prior rejections, REA has improved its offer and requested more time to make a firm offer. This move is seen as part of Murdoch’s plan to dominate the digital property market in the UK and Australia.
Inflation has slowed in France and Spain, with both countries reporting lower-than-expected rates for September. Falling fuel prices were a key factor in this decline, leading to expectations of an interest rate cut by the ECB next month. This news has led to a drop in Eurozone government bond yields.
Overall, global markets are set to end September on a positive note, with Asian and US stocks gaining and Chinese stocks seeing their best week since 2008 due to stimulus measures aimed at reviving the economy. Additionally, Japan has announced Shigeru Ishiba as the new leader of the ruling Liberal Democratic Party, further boosting market confidence.
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