LONDON: European stocks and the euro wallowed on Monday amid a stark warning about the currency bloc’s economic prospects, keeping pressure on rock-bottom oil prices following weak data from Asia.
ECB policymaker Ewald Nowotny’s warning of a “massive weakening” of the economy followed a rating downgrade in the bloc’s third largest economy Italy, buoying bond markets as investors positioned for a fresh round of central bank stimulus.
Europe’s index of top shares, the FTSEurofirst, dipped 0.3 per cent. That mirrored a move in Asia after China’s trade performance in November was much weaker than expected and third quarter GDP data showed Japan’s recession to be deeper than initially reported.
The dollar was robust, extending gains after Friday’s strong US labour data to weigh on oil prices already crushed by predictions that oversupply would keep building until next year.More >>
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