EU inflation data is due on Tuesday and is widely expected to remain below the European Central Bank's target.
"There had been speculation as to whether the current crisis would be deflationary or inflationary. Today's German inflation data suggest that for the time being the deflationary threat is clearly more pressing than any inflationary one," wrote Carsten Brzeski, chief economist, Eurozone and Global Head of Macro at ING.
The weak inflation reading could prompt action from the ECB to release more money into the market, a stance that would be similar to one promised by the US Federal Reserve last week. "We see the move in Fed policy as confirming an important shift that could also put pressure on other central banks - such as the European Central Bank - to tolerate higher levels of inflation," Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note.
Utility stocks were among the few gainers for the day, with Suez topping the Stoxx 600 after larger peer Veolia offered to buy a 29.9 per cent stake in the French water and waste firm from gas and power utility Engie for 2.9 billion euros.British markets were closed for a holiday.For daily updates on weekdays and specially selected content for the weekend. Subscribe to
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Source: The Straits Times - 🏆 8. / 63 Read more »
Source: The Straits Times - 🏆 8. / 63 Read more »