Euro pulls back before the GDP and inflation data
T’is a gloomy start of the day for the financial markets on the Old continent. Stocks in Europe fail to find solid ground this morning as data on economic growth and inflation is to be released. Investors wait for it to give some clarity on the regional economy’s health. The greenback trades up and down, since it’s not yet clear where Trump’s tax reform’s heading at.
The data in Europe might show unemployment dropped lower in September, while the eurozone economy grew for an 18th quarter in a row, albeit at a lower pace. This could mean a bit of a retreat of european companies from their current highs. But of the windfall from the US stays we might see a buy opportunity, that might defy the rest of the market participants.
On the other part of the globe, China’s official factory production index fell this month. Still the Chinese economy remains strong and keeps defying predictions of a slowdown. All of the earlier manufacturing gauges in Europe, the US and Japan showed that global growth keeps on rockin’!