Macro-News round-up:


  • The British economy, like other European economies, is beginning to show signs of economic recession. The GDP growth rate falls by 0.3% compared to an expected growth of 0%. Industrial production contracts by 0.8%, manufacturing production by 1.1% and the trade balance of its economy reaches a deficit of more than 17 billion against the expected 14.3 billion.
  • Europe’s industrial production plunges by 0.7% versus 0.3 expected and after contracting by 1% in the previous period. Paradoxically, the European market is breaking year highs, in the case of the DAX40 it is at record highs at the moment, despite Germany being officially in economic recession. Are we seeing an artificially inflated market?
  • The European Union could split its budget negotiations into two parts over the next two days to avoid impediments from countries such as Hungary, which would be rejecting new funds for Ukraine, as well as its accession to the European bloc. Remember that the former president of the European Commission recently said that Ukraine could not join the European Union because of the high levels of corruption in his state, however, it seems that the press is omitting this issue. 
  • U.S. inflation rate stalls . U.S. year-on-year actual core CPI 4.0% (forecast 4%, previous 4.0%). The market was expecting a continued decline in the inflation rate, which will confirm an economic slowdown in the United States. However, an unchanged inflation rate, has generated declining movements in the stock markets and a rebound in bond yields during the first hours after the data, 2-year bond, exceeded 4.7%. Nonetheless, US stock markets pushed back to their highs for the year at the close. The dollar also strengthened, leading to bearish movements in EURUSD.