The price of oil opt fell. Finann crisis impact on workers and unemployment in the US is still growing. According to the official, the euro area is in recession at first. The new development is basically calm, but the stock markets are falling according to.
New negative data on the state of the real economy, both from the European Union and the United States, sent black gold and below 43 USD per barrel. It also helped to ensure that the limit of consumption was not agreed at the OPEC meeting and this question was postponed to a later date. Overall, oil weakened by about 20% this week, and it only confirmed how much analysts had recently gone, prophesying the price of oil at around $ 200 a barrel.
The real economy and the ECB’s response are deteriorating
At the beginning of the week were the results of the US indicator of ISM purchasing managers for the services sector, which fell from 44b and to a threatening 37b, which was expected to be 42b. A result below 50b indicates a sector contraction. The services sector in the USA has a large share in total GDP. In the past, this indicator has proved to be a reliable guide to GDP growth estimates. Thus, the public did not sweat the number of new unemployed people in the USA, which was the city’s expected 205,000 in fact 250,000. This result can be attributed to the declining annual rate in the US market. The Fed is trying to persistently reduce these rates with its monetary policy.
Negative at first about the real economy came from Europe, for example. in the form of a PMI indicator for the service sector in the United Kingdom and in Eurozn. In both cases, this indicator was not at 50b. The first, at least until the outcome of the ECB meetings was published, was that GDP growth was expected for the third quarter in the European Monetary Union. It was confirmed that the real product of the Eurozna countries fell by 0.2% in this quarter, which meant a kind of decline in a row. And first of all, there is a generally defined economic recession, in which the Euro area is official.
Among other things, in response to this economic situation, the ECB cut its main annual rate by 0.75 percentage point hours later. In general, a slight step was expected by the ECB, namely that it reduced the annual rate by only half a percentage point. It can be seen that the ECB is really concerned about the economic development of the Eurozna, and thus is moving towards an expansionary monetary policy. However, the question is whether this low reduction in annual rates will not perform well for the economy in the long run. The fact that years of rates are in fact denying entrepreneurs information about the actual rarity of the capital, which can expose me to short-term investment, some of which may have turned out to be completely wrong in the long run.
According to the rhetoric, the representative of the ECB can expect the main year of rates to continue in the future, which also applies to countries outside the monetary union. It can be assumed that the prices of pensions can be reduced in the Czech Republic or in neighboring Poland, where rates are now the highest in Europe.
Relatively calm development in the new market
After the expected reduction of the main years of the rate by the British central bank and the first ones about the British economy (eg PMI for services), the pound had to fall for what happened. At noon on the day, it traded on a bar with the US dollar at $ 1,465 per pound, which represents a weekly depreciation of the pound by almost 5%. During the week, the pound against the dollar even reached a minimum in the last 16 years. On the euro side, the pound weakened by more than 5%, to 0.846 pounds per euro.
The hit this week was the strengthening Japanese yen, which traded at noon on the dollar day at noon at a price of 92.29 yen for the US dollar. It can be speculated that the fact that the rate in Japan has been so low for years that there is practically nowhere to fall.
The Czech koruna weakened slightly this week against the euro, from 25.4 koruna per euro shortly after Monday’s arrest and to 25.8 koruna per euro shortly after noon, which represents a depreciation of about 0.8%. Our dollar also weakened against the dollar, by about 1.2%, when around noon it traded around 20.2 crowns for the US dollar.
We did not witness any major changes in the main currency band EUR / USD this week, which can be attributed to the fact that both from the Eurozna and the USA, similarly came at first – negative. It is generally accepted, however, that the development on the currency market this week did not bring the most groundbreaking news.
Tden on the stock exchanges in the sense of loss
Stock markets ended the week this week, mainly due to a sharp correction on Monday, when US indices fell by more than 7%. This correction was to be expected, given that last week, stock markets rose without any fundamental reason. Overall, the US S & P500 index lost 5.7% for Monday and Thursday, and its brother DJIA jumped from blue-chips 5.2%.
They also managed to fall in the country of the rising sun, where the Nikkei index lost 7% for the entire Japanese stock market week. European stock exchanges thus broke down towards the bottom, when the German DAX, respectively. British FTSE were at noon on the day of noon in the dark of 4.7%, respectively. 4.1%. For a known lack of interest, the investor and a large number of missing companies initially lost the stock market, although relatively few titles in Western Europe.