In Europe, the markets received positive news yesterday. The better-than-expected French growth data mentioned yesterday was joined by Spain, whose GDP grew by as much as 0.8 percent during the quarter. (median of market expectations 0.5 percent). However, the picture of the region was somewhat messed up by Germany – GDP fell by 0.1 percent in the second quarter, while the markets expected 0.1 percent. growth.
Overall GDP in the euro area grew by 0.3 percent in the second quarter, the same as in the first quarter. There is good news on the inflation front as well. In Spain, prices are growing more slowly – inflation fell from 3.4 to 2.8 percent. (median of market expectations 3 percent). However, again Germany brought worse news – here in July, the consumer price index increased by 2.3 percent year-on-year, slightly faster than 2.2 percent. in June. European stocks rose yesterday (STOXX 600 +0.5%) and futures predict another positive trading session. Now we look forward to July for the Eurozone. inflation data, markets expect inflation to remain stable at 2.5 percent.
The Bank of Japan raised its overnight interest rate to 0.25 percent by a 7-2 vote. Also, the bank prepared a detailed quantitative tightening plan, which will reduce monthly bond purchases. The markets reacted positively to the new changes – the value of the NIKKEI 225 index rose by 1.6 percent, and the Japanese yen strengthened slightly.
Hamas claims that Israel killed their leader. The Israeli attack was carried out in Iran, causing oil to react the most, with Brent prices up nearly 2% this morning. back to $80/bl. Even after today's rally, oil prices are down more than 6 percent for the month. Expectations for lower industrial activity in China contribute significantly to the falling prices, the country's industrial PMI has been below the 50 mark for 3 months, which indicates declining activity in the sector.
