The news in Europe this morning failed to inspire as PMI numbers were released. Although some members met expectations the vast majority show signs of a slowdown in overall economic activity.
The government is looking at applying a set of measures, including loans, taking an equity stake and also passing part of the surge in costs onto customers, said two people familiar with the talks.Chancellor Olaf Scholz has activated the second phase of the country's three-stage emergency gas plan, with the threat of rationing if the situation worsens.
The sectoral breakdown is not for the faint of heart with financials and industrials leading the way on this bloody Tuesday. From a technical perspective, last week finally saw a weekly candle close below the key psychological 13000 level.
The daily candle yesterday retested the psychological level before declining. Early European trade saw this downward pressure persist as we continued to edge toward the year-to-date lows. With these lows now met we might see a bounce from this level before a retest and potentially a break and close below.