Global stocks lost over $8 trillion in October, a headline which suits the best on the Halloween day.
Smart money is running for the hill and this was the message which October brought for the global equity market. Global stocks lost over $8 trillion in October, a headline which suits the best on the Halloween day.
Looking at the Chinese economy, one thing becomes clear that the trade tensions are taking the toll on the country’s economy. Perhaps, it is time that Beijing may start to admit facts and start to see the consequences of their action. The economic data has started to nosedive, the manufacturing gauge has shown sluggish sign in the economy and the new export orders have touched the level lowest not seen since 2016. The PMI number has printed a reading of 50.2 and if it drops below 50, it will confirm contraction in the economy. Looking at the current trade war and the situation around it, it is likely that the situation would only become worse.
Over in Italy, the populist government has taken matters to the next level by saying that the current dire economic conditions over in Italy are only due to the reason that the previous governments have bowed to the EU. The populist government has one agenda, stick to their promises which they made to their voters at any cost. This is the last thing that one would like to hear especially what happened in Germany. The leader of the free world, Angela Merkel is no longer going to be the leader of her party and she will not be running for another term. She is the one who kept the Eurozone together and most importantly helped the Eurozone to move out of its misery.
In terms of economic data, we have the Eurozone’s inflation number due later today. It is expected that the inflation number may have accelerated by 0.1% to 2.2% from its previous reading of 2.1%. Inflation moving in the right direction would comfort the ECB because of GDP isn’t strong enough at least the inflation is moving closer or its target.
