Summary for the 25th of October


At the press conference, the ECB encourages governments with fiscal space to act in an effective manner to soften the economic downturn. Countries with high public debt, should let the automatic stabilizers from prudent policies and a structural balance, to operate freely. Draghi believes in the policy of negative rates, and that the positive effects from this policy outweigh its side effects. He denies that there are disagreements in the Governing Council about the decision made in September.

The PMI for October from the EU Area hasn’t worsened. France shows improvements in the PMI data with value over 50 both in manufacturing and service sectors. PMI data from Germany shows a little improvement in the manufacturing sector but the service sector still weakens. The manufacturing index is at 41.9 showing a downward trend while the service sector is at 51.2.

The data for US durable goods orders is lower than expected in September. Orders ex transport and defence decline by 0.5 percent, same as the month before. The value indicates weaker outlook for corporate investments. The data for initial jobless claims is still on a low level while new home sales have declined less than expected.

Boris Johnson will hold a Commons vote for the 12 of December election. The required vote is 2/3, which means Johnson will need the support from Labour.

Indices for 25th of October
Dow: -0.1 % (24th of October)
S&P 500: +0.2% (24th of October)
Nasdaq: +0.8% (24th of October)
Nikkei: +0.1%  (25th of October)
Chinese indices: Between -0.6%(25th of October)
STOXX Europe 600 Index: +0.16% (25th of October)

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