📆 Tuesday, September 5
► The Stoxx 600 fell 0.6%, pointing towards a fifth consecutive day of declines, after the European stock index failed to hold onto yesterday's initial gains through the end of the European session. Investors are now on the August PMI data amid rising concerns of stagflation. Eurozone and U.K. PMI data likely to add to recession/stagflation concerns. ECB President Christine Lagarde did not provide clarity on interest rate decisions in her recent speech.
► In the Eurozone, service sector activity in countries like France and Germany has been slowing down, with PMIs indicating declines meeting general market consensus. The Eurozone as a whole also experienced a dip in services PMI to 47.90 in August, indicating the most significant monthly contraction since March 2013, excluding the pandemic period.
► The USD strengthened a bit further against the Group-of-10 currencies while US Treasuries dipped after a yesterday's holiday. Goldman Sachs exhibited optimism for the US economy by cutting its 12-month US recession probability from a prior estimate, citing positive inflation and labor market trends. Investors are waiting for the release of the U.S. Purchasing Managers Index for August to get more clarity on the state of the U.S. economy.
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