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On September 22nd, Ruth Gregory of Capital Economics stated in a report that the UKs public finance data for August was disappointing, which may limit the new UK governments policy ambitions. Public sector borrowing reached £18.3 billion in August, exceeding the Office for Budget Responsibility (OBR) forecast; the main reason for this was increased government spending, rather than weak fiscal revenue. This made the actual borrowing £8.1 billion higher than the OBRs March forecast. This overspending is expected to continue, as real GDP growth slows in the fourth quarter and the government is expected to announce further cost-of-living subsidies. This supports the view that to avoid significant tax increases or a strong market backlash, the government may scale back or postpone many policy objectives when it announces the budget next month.Ukrainian President Zelenskyy: We are continuing to explore the possibility of producing these air defense systems and missiles in Ukraine, while also working with partners to advance the FREYJA anti-ballistic missile project. We expect to see the first results this year.Ukrainian President Zelenskyy: We are also prepared to use funds provided by EU loans to purchase more SAMP/T air defense systems and their associated missiles for Ukraine.September 22 - According to Al-Masirah TV, controlled by the Houthi rebels in Yemen, Saudi Arabia launched a missile attack on the Zahir district and surrounding areas in Saada province, northern Yemen. There are currently no reports of casualties. Saudi Arabia has not yet responded to the report.Ukrainian President Volodymyr Zelenskyy met with French President Emmanuel Macron, primarily to discuss security issues and winter support plans for Ukraine.

Two Trades to Watch: DAX, GBP/USD

Jimmy Khan

May 07, 2022 10:43


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The DAX is falling as industrial output declines.


After a slaughter on Wall Street that saw the Nasdaq finsh 5% down, European equities have begun in the red, extending losses from the previous day.


Fears of inflation, stagflation, and recession are weighing on the market as we approach the weekend. The DAX is expected to shed 1.4 percent this week, marking the fifth consecutive week of losses.


In March, German industrial output decreased -3.9 percent on a month-over-month basis, down from 0.2 percent in February and considerably below the -1 percent drop forecast. The negative report comes on the heels of a sharp drop in German manufacturing orders in March. The data represents the economic effect of the Russian conflict on Germany and the Eurozone as a whole.


Germany does not have any additional statistics due today. Sentiment and the US NFP announcement will affect European indexes.