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German inflation stays above ECB objective
In August, inflation in Germany's most populous regions stayed above the ECB’s objective, thus adding weight to the major financial institution’s case for gradually winding down its enormous monetary stimulus program.
Well, with price pressures mounting in the euro zone, the EU’s key bank is geared towards wrapping up 2.6 trillion euros of bond purchases by the end of 2018. However, it has also added that interest rates are going to remain at record minimums through the summer of next year.
As a matter of fact, the ECB's inflation objective turns out to be quite below, although close to 2%.
Eventually, annual inflation in the most populous state of Germany, North Rhine-Westphalia, didn’t change keeping to 2% from July. That’s what preliminary regional statistics office data has recently uncovered.
In addition to this, in Bavaria, which happens to be Germany’s the second-most populous region, inflation was intact too – it kept to the reading of 2.2%. Then, in Baden-Wuerttemberg, which is the country’s third region in this regard, this crucial economic parameter went down to 2.1% from 2.2%.
In Hesse, inflation went down to about 1.7% and to 2% in both Saxony and Brandenburg.
In Germany, the state inflation readings that aren’t harmonized to compare with other euro zone members will show up in nationwide data at 1200 GMT.
A Reuters survey conducted before the publication of the regional data informed that Germany's harmonized consumer price inflation rate would go down to 2% from July’s outcome of 2.1%.
Besides this, in Spain that happens to be the EU’s number four economy inflation edged down to 2.2% in August.
On Friday, the euro zone is going to uncover preliminary August data. It’s generally anticipated to stay intact at about 2.1%, as follows from a Reuters survey.
All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!