Another day starts in the old continent that is still facing the repercussions the sovereign dept crises with hopes that the central banks around the world would take actions to contain the ongoing dilemma and today, the UK economy will continue unveiling his basic data and announce the Retail Data for last month, while the Euro Zone, the source of the problem, release their inflation data that is expected to remain around acceptable levels, which would give a green light to more monetary easing.
Financial markets today live on a hope that the ECB would buy government bonds from troubled European economies, mainly Sabin and Italy, and all the current indicators in the financial markets supports predictions of the ECB intervention to solve this problem soon.
Euro Zone fall into a recession for the second time in 3 years since the last financial crises, where the GDP recorded contraction of 0.2% comparing to first quarter of 2012 when economies failed to record any growth levels and stayed at 0.0%.
Current economic data in the Euro Zone supports the importance of ECB actions to contain the crises that has paralyzed the life in the region, where all economic sectors contracted deeply after the European governments approved strict austerity policies to reduce the defect in the general budget, in addition to collapsed trust levels with the very high increase in unemployment that have reached above 11%.
Even inflation data at the area gives a green light for more easing in the monetary policy from the ECB, and today it is expected that the annual reading of the Consumer Prices Index (first measurement of inflation) at 2.4% levels during the month of June comparing to last month.