European stock markets started the day with declines.
After the opening, the Stoxx Europe 600 benchmark index lost 1.1 percent to 514 points, while the DAX 40 index in Germany fell 1 percent to 18,560 points.
The FTSE 100 index in the UK is trading down 0.8 percent to 8,233 points, the MIB 30 index in Italy is trading down 1 percent to 33,524 points, the CAC 40 index in France is trading down 0.8 percent to 7,516 points and the IBEX 35 index in Spain is trading down 1 percent to 11,169 points.
While selling pressure deepened in global markets yesterday as macroeconomic data released in the US revived recession fears, data from the employment report to be released on Friday continues to remain in investors’ focus.
As European stock markets start the new day on a sell-off note, concerns about economic activity across the region continue to be the focus of investors.
Analysts noted that it is almost certain that the European Central Bank (ECB) will make two more interest rate cuts this year, and that signals from macroeconomic data could open the door to the possibility of a third interest rate cut.
Joachim Nagel, a member of the ECB’s executive board and president of the German central bank (Bundesbank), said on Monday that the economic downturn Germany experienced in the spring should be a “wake-up call” and that the government should implement previously announced measures to boost growth and improve the debt brake.
“The European Central Bank should not declare victory over inflation too early, even if the decline in consumer prices allows for another rate cut next week,” Nagel said in another statement.
Analysts said that the service sector and composite PMI data will be followed across the region today, and emphasized that the signals to be obtained from the data could provide more information about economic activity.
Analysts stated that in addition to the service sector and composite PMI data to be announced worldwide today, an intensive data agenda will be followed, especially the Producer Price Index (PPI) in the Eurozone, factory orders in the US, durable goods orders, JOLTS job openings and the Fed’s Beige Book Report.
