Tuesday 8th September 2020 - 10:15 (BST)
The final reading for Eurozone GDP over Q2 2020 has been confirmed at -11.8%, slightly better than the -12.1% from previous estimates but significantly lower than last quarters contraction of -3.8%. It also confirms the Eurozones biggest contraction since records began back in 1995, with Spain (-18.5%) and Croatia (-14.9%) suffering the biggest falls. Elsewhere, figures published by Eurostat showed EU unemployment increased from 2.9% to 3.1% over the same period.
All this comes against a backdrop of rising Brexit tensions as negotiations resume in London today. Major sticking points remain over state aid and fisheries, with neither parties willing to back down. The pound has dropped over 2% against all major G10 currencies following reports that the UK government is preparing to override previous agreements with the EU if a deal is not struck by October 15th.
Further scrutiny will also be paid to the European Central Bank who announce their latest policy decisions on Thursday. Markets will be listening closely to comments from its current President, Christine Lagarde, who could hint that it is ready to change its QE programme or deposit rates sooner than expected.
