Bond prices are falling across the Eurozone today as the PMI release shows the economy is on the verge of recession.
It is indicative that the 10-year German bond yield exceeded 2%. The PMI, which measures economic activity, fell in September for the third month in a row, falling to lower levels than in 2013, excluding the pandemic period. with the recession showing signs of acceleration in manufacturing and services.
“The third consecutive fall in the Eurozone PMI shows that business activity contracted during the quarter. This confirms our view that the recession may already have started,” said Bert Colijn of ING.
A Reuters poll earlier this month gave a 60% chance of a eurozone recession within a year.
The euro remains under pressure against the dollar
These events negatively affected the euro exchange rate, which fell below the level of 0.98 against the dollar.
In HDAT, transactions amounting to 50 million euros were recorded, of which 26 million euros corresponded to purchase orders.
10-year bond yield rose to 4.62% from 4.44% yesterdayagainst 2% of the corresponding German title, with which the margin was 2.62%, from 2.48% that closed yesterday.
In the forex market, the dollar strengthened against the euro, with the European currency trading at $0.9736 in the early afternoon, from $0.98490 when the market opened.
The indicative price of the euro/dollar exchange rate is announced The ECB settled at $0.9754.
What is happening in the eurozone economies?
its recession German of business activity rose as higher energy costs hit Europe’s largest economy and new business activity fell.
However, the activity in France It was higher than expected, although the PMI showed the eurozone’s second-largest economy was still struggling as a modest recovery in services offset a drop in manufacturing.
A BrittanyOutside the European Union, the economy worsened as companies grappled with rising costs and falling demand, also raising the growing risk of a recession there. In a bid to boost growth, the UK’s new finance minister, Kwasi Kwarteng, on Friday unveiled a nearly $223.2 billion plan for tax cuts, energy subsidies and reforms.
The Athens Stock Exchange was also under pressure – Loss 2.39%
Share prices on the Athens Stock Exchange came under heavy pressure today, with the market retreating from 800-unit levels, amid heavy pressure in European markets.
Investors in European stock markets are concerned about a possible recession in the European economy after today’s macroeconomic data on the trajectory of the European economy, which further weighed on confidence after the successive rises in interest rates.
At the center of the liquidations were bank shares, while the total market capitalization decreased today by 1,347 million euros.
The General Price Index closed at 798.11 points, registering losses of 2.39%. It is the lowest close since the session of July 15, 2022 (794.62 points).
source: iefi merida