Rolling coverage of the latest economic and financial news, as nervous investors push the US dollar to a two-month high
- Introduction: Pound hits two-month low against strong dollar
- BofA: UK economy to stagnate
- Coming up: Eurozone and UK PMI surveys
Japan’s economy has suffered its eighth monthly contraction in a row, adding to anxiety over the recovery.
The au Jibun Bank Flash Japan Composite PMI, which tracks Japanese manufacturing and services, came in at 45.5 for September — still below the 50-point mark showing stagnation.
#JAPAN SEPT PRELIMINARY PMI MANUFACTURING: 47.3 V 47.2 PRIOR (17th straight contraction)
– PMI Services: 45.6 v 45.0 prior (8th straight contraction)
– PMI Composite: 45.5 v 45.2 prior (8th straight contraction)
*Link: https://t.co/PIKdEbTBIb pic.twitter.com/9e1m2MVupT
#Japan manufacturing PMI remains below the 50-threshold for 17th month in a row and thus Japan is the only G7 economy, still not seeing signs of recovery. Large car sector and strong yen is probably key. That said, Germany has managed to bounce back despite the same challenges pic.twitter.com/ljExAkmrm1
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
“We struggle to see how the economy can grow in the fourth quarter with escalating lockdown measures, fading stimulus and Brexit risks.”
Related: UK recession expected to continue until spring amid Covid-19 surge
It seems to be a matter of degree rather than kind, but a couple of crucial variables are changing the prevailing narrative. One: fresh US fiscal support may not arrive before the US Presidential election. Two: Europe’s economic recovery is at risk from the latest wave of COVID-19 infections and lockdowns
The notion of a broad-based lift in global economic activity, that would crucially narrow the performance gap between the US economy versus that of the rest of the world, has been called into question. Not that such a thing can’t or won’t occur, but that instead, perhaps its timeline has been slightly pushed back.
#DXY Inverted head and shoulders(unreliable pattern) targets 96 on Dollar. Not good news for Gold. 94 over under level. pic.twitter.com/84v5tpTL3g
The $USD continues its ascent this AM sending the Euro and Sterling markedly lower ahead of flash PMIs. Investors bracing for impact of rising virus cases on the economic recovery in Europe
GBP -0.3% to $1.268
EUR -0.2% to $1.168
A full recovery is likely to come only when people are confident it is safe to re-engage in a broad range of activities
Related: US economy showing improvement but path ahead ‘uncertain’, says Fed chair
