According to the WSJ, « the eurozone economy slowed in the three months to September as exports to large developing economies weakened, The slowdown was led by Germany, the currency area’s exporting powerhouse, while Italian economic growth also eased. There were fresh contractions in Greece, Finland and Estonia, while Portugal’s economy stagnated.
Summary of the key European economic datapoints:
- Euro-Area Economy Grew 0.3% in 3Q vs 0.4% Estimate
- French Economy Grew 0.3% in 3Q, Matching Estimate
- German Economy Grew 0.3% in 3Q, Matching Estimate
- Italian Economy Grew 0.2% in 3Q vs 0.3% Estimate
- Portugal 3Q GDP Unchanged Q/q vs Est. +0.4% Q/q
- Spain Oct. Harmonized CPI -0.9% Y/y; Prel. -0.9% Y/y
- Italy Oct. Final HICP +0.3% Y/y; Est. +0.3% Y/y
- Dutch Economy Grows 0.1% in 3Q; Est. +0.4% Q/q
Another problem: with both a rate cut and more QE from the ECB already largely priced in, the weak European data did not boost risk assets, and so the Stoxx Europe 600 Index is on track for its biggest weekly decline in two months.
Euro-Area Growth Misses Estimates as ECB Ponders More Stimulus (BBG)
Slower-than-expected euro zone growth likely to seal more ECB stimulus (Reuters)
China Doubles Margin Requirement for Stocks to Curb Leverage (BBG)