- European stocks fell further as weak German data and rising oil prices fueled fears of stagflation across the eurozone.
- The STOXX 600 index fell 0.7% for the sixth consecutive session after German factory orders fell in July, indicating that Europe's largest economy's woes are continuing into the third quarter. Fears of stumbling growth and sticky inflation were also fueled by Brent crude prices remaining just below $90 per barrel after the largest 0PEC+ oil producers extended supply cuts through the end of the year.
- The weakness in Europe and growing signs of a Chinese economic slowdown put pressure on equity futures in the United States, where signs indicate that the Federal Reserve will not cut interest rates anytime soon.
- The euro received a brief boost from comments by ECB's setter Knot, who suggested that markets may be underestimating the likelihood of an interest-rate hike in September.
- IFW Institute: We see German GDP shrinking by 0.5% (previous forecast: -0.3%) in 2023, rising by 1.3% (previously 1.8%) in 2024, rising by 1.5% in 2025.
