UK GDP data came in weaker than initially expected, primarily due to lower government spending and exports. However, business investments performed better. The GDP growth rate for Q2 was 0.7% year-over-year (expected: 0.9% y/y; previous: 0.3% y/y) and 0.6% quarter-over-quarter (expected: 0.6% q/q; previous: 0.7% q/q).
New stimulus measures for the real estate market are driving Shanghai indices up by over 3%. The Nikkei index is up by more than 1%.
The People's Bank of China announced new stimulus measures for the real estate market, instructing banks to lower mortgage rates for existing home loans by October 31. Additionally, three tier-one cities (Guangzhou, Shanghai, and Shenzhen) have announced easing measures for home purchases..
Poland's September CPI data shows inflation at 4.9% y/y (as expected; previous: 4.3%) and 0.1% m/m (as expected; previous: 0.1%). This however is a one-off as it is a result of higher base level.
German CPI data from various states showed lower year-over-year figures but increased monthly price pressure. This could potentially influence the ECB's rate cut decisions.
European stock markets are experiencing declines. The DAX is down 0.3%, FTSE 100 is down 0.77%, and CAC40 is down 1.57%. The automotive sector is under pressure due to earnings warnings from major companies like Stellantis, Volkswagen, and Porsche.
ECB President Christine Lagarde spoke before the European Parliament's Economic and Monetary Affairs Committee, suggesting a gradual economic recovery in the EU despite mixed economic climate indicators.
Wall Street shows mixed sentiments: Nasdaq is down 0.2%, Russell 2000 up 0.16%, while Dow Jones is down 0.3% and S&P500 is flat.
The strongest currency today is the New Zealand Dollar, which appreciated the most. USDNZD and EURNZD are down 0.6%, while GBPNZD is 0.3% lower.
The cryptocurrency market is seeing significant losses today. Ethereum is down 2.7%, Dogecoin falls by 9.95%, and Bitcoin declines 3.8%, to around 63,300 USD.
Precious metals are starting the week with a slight correction: gold retreats by 0.5%, silver by 1.1%, and platinum by 2.15%.