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Eurozone Business Climate Falls Short of Expectations in September
Confirmed
In Short: The Eurozone economic sentiment weakened in September, falling from 98.4 to 97.9, below the expected 99.0 and its long-term average of 100.
The Eurozone economic sentiment weakened in September, falling from 98.4 to 97.9, below the expected 99.0 and its long-term average of 100.
Employment expectations also softened, with the Employment Expectations Indicator declining from 98.8 to 97.5, further below its long-term average.
Hiring expectations weakened particularly in retail and services, despite better employment plans in industry and construction.
The September survey indicated an increasingly uneven recovery rather than a broad deterioration, with inflation expectations rising and selling-price expectations increasing sharply in industry and construction.
The Euro traded mixed on Monday as investors anticipated next week's Eurozone inflation data, with economists expecting the European Central Bank to resume raising interest rates.
Crédit Agricole noted that energy was again a key factor in Eurozone inflation, describing it as 'back in the driver's seat.
AUD/USD hit a fresh low since early August, near 0.7000, after breaking below the 200-day SMA overnight, while gold clung to modest gains below $4,150.
Chainlink (LINK) edged below $15.00, trimming its 10% gains from the previous day, driven by the launch of its new Cross-Chain Interoperability Protocol 2.0 and Swift ledger integration.
Background
The Eurozone business climate index fell short of expectations in September, despite improvements in Germany.
What's confirmed
- The Eurozone economic sentiment weakened in September, falling from 98.4 to 97.9, below the expected 99.0 and its long-term average of 100.
- Employment expectations also softened, with the Employment Expectations Indicator declining from 98.8 to 97.5, further below its long-term average.
- Hiring expectations weakened particularly in retail and services, despite better employment plans in industry and construction.
- The September survey indicated an increasingly uneven recovery rather than a broad deterioration, with inflation expectations rising and selling-price expectations increasing sharply in industry and construction.
- The Euro traded mixed on Monday as investors anticipated next week's Eurozone inflation data, with economists expecting the European Central Bank to resume raising interest rates.
- Crédit Agricole noted that energy was again a key factor in Eurozone inflation, describing it as 'back in the driver's seat.
- AUD/USD hit a fresh low since early August, near 0.7000, after breaking below the 200-day SMA overnight, while gold clung to modest gains below $4,150.
- Chainlink (LINK) edged below $15.00, trimming its 10% gains from the previous day, driven by the launch of its new Cross-Chain Interoperability Protocol 2.0 and Swift ledger integration.
What's still developing
- AUD/USD reverses a brief uptick and turns lower to hit nine-week lows below 0.7000 in the European morning on Tuesday, as traders digest cautious remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock during the press conference.
- Gold clings to modest recovery gains through the first half of the European session, albeit it lacks follow-through and remains below $4,150.
- Manufacturers are becoming less pessimistic and services remain positive, but households are turning more cautious just as hiring expectations soften.
- The weakness came instead from households and employment expectations.
- One caveat is that September’s euro-area aggregate excludes Italy’s consumer survey because of a structural break, limiting direct comparison with previous months.
- The move appears to be a corrective bounce, as the broader narrative remains tied to expectations of further Federal Reserve interest rate hikes.