Global
stock markets endured a torrid time last week with stocks falling to levels
last seen a year ago.
Once
again the Eurozone was the focus of market attention with the German economy
facing particular scrutiny.
Germany
is Europe's biggest single national economy, and until now has been faring far
better than almost every other Eurozone member.
However
recent data makes for gloomy reading. Germany saw a 5.8% drop in exports during
August the biggest monthly decline in over 5 years. . At the same time the
German government cut its own economic growth forecasts to 1.2% for both 2014
and 2015.
These
statistics are fuelling concerns that Europe’s biggest economy is heading into
recession.
A
German recession could sap business confidence across the Eurozone even
further, and would hit the other Eurozone members more directly if their
exports to Germany fell.
Elsewhere,
data from the rest of the Eurozone continues to paint a grim picture.
Whether you turn to Europe, to the United States of America, to
other places as well, there is a level of uncertainty that is sapping
confidence.
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