Italy’s Inflation Rate Rose in August: EWI Fell 0.40%
According to the August 31 release by the ISTAT, the EU’s harmonized inflation rate in Italy rose to an impressive 0.50% in August on a YoY (year-over-year) basis.
The inflation rate for the Eurozone, as gauged by the change in the consumer price index, was in negative territory in December 2014 and 1Q15.
It looks like it will take more than just a positive inflation reading for investors in the United Kingdom to have positive sentiments towards the region’s growth.
Why the Swiss Franc Is the Golden Currency
Recently, the safe haven currencies like the Swiss franc and the Japanese yen are the ones that are showing a greater correlation to gold.
Though below the forecasts, the decent PMI numbers in August drove the euro-dollar currency pair to a high of 1.133.
China, the manufacturing hub of the world, has been recording sluggish growth. China’s August PMI numbers were at 47.3, below the crucial level of 50.
Dutch Manufacturing PMI Drops in August, but Still Strong at 53.9
Business activity dropped to a five-month low in the Netherlands in August. The Manaufacturing PMI reading was 53.9 in August, a dip from July’s 56.0 but quite strong considering the neutral level of 50.0.
Italy’s August Manufacturing PMI slipped to 53.8 level in August, down from July’s four-year-high of 55.3. The reading was well supported by an increase in new orders at manufacturers.
The Eurozone Manufacturing PMI report for August met expectations for Eurozone business activity despite heightening global economic uncertainty. The reading for August was 52.3. It was 52.4 in July.
Why the Eurozone May Need More Monetary Stimulus
GDP (gross domestic product) growth was expected to rise in Q2 on the back of the monetary stimulus from the ECB to boost economic activity.
We present to you an overview of what was relevant from the ECB’s September policy meeting on September 3 and Mario Draghi’s press conference.
In the coming week, Greece is due to present its next set of austerity measures, which it must implement in order to secure new financing.
EWU Rises as Bank of England Holds Firm on Interest Rates
The Bank of England’s MPC voted to hold interest rates at 0.5%, which strengthened the pound sterling against the euro and dollar. The EWU rose by 0.89%.
The UK market’s reaction to the ECB’s announcement of its asset-buying plan was reflected in the rise of the iShares MSCI United Kingdom ETF (EWU) on Thursday, September 3.
The UK market experienced a stock rally on Thursday, September 3, over a comment of the ECB Chief Mario Draghi regarding the ECB’s plan to fully implement its asset-buying program.
Unemployment Hits 11.1% in the Eurozone, 5.5% in the US
According to the July 31 Eurostat release, the unemployment rate in the Eurozone was at 11.1% in June 2015. It held steady from May’s 11.1%.
EWG was down 0.57%, as Germany’s inflation and unemployment rate held steady despite the ECB’s (European Central Bank) monetary easing measures.
Greece just recorded its 28th month of deflation. American companies such as Pfizer (PFE), PepsiCo (PEP), and Xerox (XRX) operate and provide employment in Greece.