"This morning saw the German industrial production figure underperform expectations coming in at 1.3% following a revised figure of -3.7% in August. Notably, with the likes of the Hang Seng (2.12%) and Nikkei 225 (1.34%) gaining ground in Asia, it is Europe that appears to be the region suffering against a backdrop of uncertainty and weak growth expectations. Today sees the latest interest rate decision from the bank of England with markets largely expecting the committee to hold rate steady at 4%."
"With inflation largely under control over the past five months and the jobs market showing signs of stress, there is the basis for Bailey and co to move the needle in a bed to lift economic activity. However, with the chancellor expected to enact a historic shift in tax policy that will undoubtably alter the trajectory of growth and inflation, the data dependent approach taken by central banks will likely mean that this meeting has come too early to act."
European markets declined amid renewed risk-off sentiment despite resilient US tech earnings and mixed regional performance. German industrial production underperformed, rising 1.3% after a revised -3.7% in August, while Asian markets such as the Hang Seng (2.12%) and Nikkei 225 (1.34%) gained. Markets expect the Bank of England to hold rates at 4% as inflation has moderated and the jobs market shows strain, though impending historic tax changes from the chancellor complicate policy. US labour indicators were mixed: ADP beat expectations at 42k, ISM services employment improved slightly, but overall hiring remains weak and October job cuts surged to 153,074.
Read at London Business News | Londonlovesbusiness.com
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