Eurex Micro Product Suite Weekly Update

• European shares fell as recession warnings from major global financial institutions and bets of a large interest rate hike from U.S Fed next week knocked sentiment; Global economy may be inching toward a recession with central banks aggressive methods in tackling sticky inflation and the effects of the synchronized tightening of policies could lead to compounding effects of a steeper-than-expected slowdown in global growth, said The World Bank on Thursday
• Eurozone inflation hit record high of 9.1% in August on Friday, driven by higher energy and food prices and is likely headed toward double digits in October; CPI in the 19 countries using the euro rose 0.6% MoM and 9.1% YoY, the highest rate since the euro was created in 1999; German business confidence slumps worst than expected in September due to worries on energy shortages and fall in export orders and production
• As winter approaches and Europe continues to battle the energy crisis, investors are increasingly concern with the impact on the energy supply crunch on the market outlook; A draft European Commissions proposal has been made to imposed levy on fossil fuels firms as the EU believes a ‘solidarity contribution’ should be introduced for the fossil fuel industry; Oil, gas, coal and refining companies would have to make a financial contribution based on taxable surplus profits made in the 2022 fiscal year
• The ECB has reaffirmed the priority of fight against inflation with ECB Vice President Luis De Guindos indicating the importance ofdetermined monetary policy steps to stop high price growth from getting entrenched; Price stability is the main priority before growth said ECB President Christine Lagarde on Friday
• Comparing with the previous week, the EURO STOXX 50 Index was down 2.0% to 3,500.41 points, the DAX Index was down 2.7% to 12,741.26 points, and the SMI Index was down 2.7% at 10,610.65 points
• In times of uncertainty, the Eurex Micro Product Suite remains an avenue for investors to take an opinion on the European markets as orderbook spread and depth remain attractive throughout the day; Over 6.2 million contracts have been traded (YTD), ensuring investors can continue to capture opportunities.

Learn more:https://www.eurex.com/ex-en/markets/idx/micro-product-suite