Results from Munich-based economic institute Ifo will take center stage at the beginning of this week. Since April this year, sentiment among the 7,000 companies covered in this survey has deteriorated continuously and the widely-watched business climate indicator reached the lowest level since the end of 2012. Analysts expect the gauge to drop again in November.
Meanwhile, European Central Bank President Mario Draghi emphasized that the central bank will do whatever it takes to raise inflation and inflation expectations as fast as possible. Draghi’s comments leave the door open for the possibility that the ECB will expand its measures, buying corporate and government bonds. The Euro fell about 0.5% against the US dollar after Draghi’s statement. On Friday, China’s central bank cut its benchmark interest rates. This helped Asian stock markets to climb this morning.
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