Technical & Fundamental Oil Reports Specialists

Follow us

Nationalism stalks Europe

Published Tuesday, September 2nd, 2014

What matters most to the stock markets: the possibility of a “full scale” war between Ukraine and Russia or the possibility of the ECB delivering QE on Thursday? For the moment it is the latter probably because the markets are still betting against a “full scale” war.

QE from the ECB looms larger after a set of miserable final PMI readings from the eurozone for August. The composite came out at 50.7 from 51.8 in July. German factory activity grew at its slowest pace in 11 months, the French manufacturing PMI at 46.9 is the lowest in 15 months and the Italian at 49.8 the lowest in 14 months. Forward order books are universally poor.

All of this is wonderful news for President Putin, who knows that the eurozone is a nudge away from a descent into full blown recession. Angela Merkel says that “accepting Russia’s behaviour is not an option”. Accepting it may not be an option but that is very different from actually doing something that will make President Putin sit up and take notice rather than laugh.

to read the rest of the report, please click here 

Posted by David Hufton