Wise money markets cautious as eurozone recession deepens

There are concerns for global growth which have been weighing on financial markets of late. Wise money markets cautious as eurozone recession deepensThe GDP contraction from Japan has done little to ease these worries as we move in to a fairly quiet week ahead.

In the eurozone, French and German GDP figures were out this morning, showing that Germany has managed to grow ever so slightly while France has remained stagnated with 0% growth quarter on quarter.

The eurozone GDP figures showed that the region has contracted by a further 0.2% from the prior quarter.

Investor concerns for further slowdown in these areas are also bringing down sentiment, though an Italian bond auction has calmed nerves, temporarily.

News from Greece yesterday also showed that they have contracted at the highest levels since the recession began in 2008, at -6.2%.

Most of the focus will be on next month’s Troika visit to Greece where they will ascertain how to disburse the funds for the bailout, provided Greece does enough to conform with the austerity measures.

Next month will also witness Spain having a review of their banking sector to determine how much aid they would need from the EFSF.

Sterling has managed to trade at higher levels at the start of this week after crossing 1.57 in opening trade.

Inflation figures were out this morning at 2.6% which was higher than median projections that were supposed to be within the Bank of England target range of 2.3% for the month of July.

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