The contraction of the European economy
In November, the eurozone economy showed worrying signs, slipping back into contraction again. The HCOB PMI index of tertiary activity, a key indicator of economic health, fell below the critical threshold of 50 points, reaching 49.5, compared to 51.6 in October. This represents the lowest value recorded in the last ten months, highlighting a phase of stagnation that could have significant repercussions on the labor market and on the overall growth of the
region.
The reactions of the financial markets
Asian stock markets closed in a mixed way, with Hong Kong maintaining its levels and Shanghai recording a decline. Investors are now awaiting stimulus measures from China, hoping they can help revitalize the global economy. In Europe, stock exchanges opened higher, with the Ftse Mib in Piazza Affari showing an increase of 0.6%, reaching 34,050 points. This rise could be interpreted as a positive reaction to expectations of more accommodative monetary policies
.
Future prospects and Fed statements
Mary Daly, president of the San Francisco Fed, recently stated that a possible interest rate cut is not guaranteed for this month. This statement has raised concerns among investors, who fear that a restrictive monetary policy could further slow economic growth. The uncertainties related to monetary and fiscal policies, together with the contraction in economic activity, pose questions about the future prospects of the eurozone and
the region’s resilience.
