Key Takeaways
- Global stock markets are extending their rally, buoyed by surging growth bets, with Bank of America's Michael Hartnett anticipating further upside.
- The European Central Bank (ECB) is not signaling immediate rate cuts, as Governing Council member Edward Scicluna stated, "There is no cut already in a box and just waiting to be unpacked."
- Citi has launched a 2025 year-end forecast for Ether (ETH) at $4,300, reflecting continued institutional interest and market optimism in the cryptocurrency space.
- German and Eurozone ZEW economic sentiment significantly improved in September, with Germany's expectations index rising to 37.3, well above analyst estimates.
- Nissan (7201.T) is cutting Leaf production plans due to a battery shortage, while KLM (AF.PA) faces significant flight cancellations amid a ground crew strike.
Global markets are showing signs of renewed optimism, with a broad stock rally extending as investors increase their bets on economic growth. This sentiment is echoed by Bank of America's Michael Hartnett, who foresees the rally continuing. Emerging-market assets are also extending their pre-Federal Reserve rally, benefiting from a retreating U.S. dollar.
However, the European Central Bank (ECB) is maintaining a cautious stance on monetary easing. ECB Governing Council member Edward Scicluna explicitly stated there is "no cut already in a box and just waiting to be unpacked," indicating that immediate rate reductions are not on the agenda. This comes as former ECB President Mario Draghi criticized the EU for moving too slowly in boosting economic competitiveness, warning that the region is "failing to match the speed" of a rapidly changing global order.
Economic data from the Eurozone presents a mixed picture but with some positive shifts in sentiment. Eurozone industrial production for July saw a modest increase of 0.3% month-over-month, though this was slightly below expectations. Year-over-year industrial production rose by 1.8%. Meanwhile, Eurozone labor costs increased by 3.6% year-over-year in Q2. More notably, the ZEW survey for September showed a significant rise in economic expectations, with Germany's sentiment index jumping to 37.3 (estimated 25.0) and the Eurozone's rising to 26.1 (from 25.1). Despite this, the current situation index for Germany worsened to -76.4, missing estimates.
In corporate news, Citi has initiated a 2025 year-end forecast for Ether (ETH) at $4,300, highlighting continued interest in the cryptocurrency market. Elsewhere, HSBC has raised its target price for Meta Platforms (META) to $905 from $900, signaling analyst confidence in the tech giant.
The automotive and aviation sectors are facing operational challenges. Nissan (7201.T) is reportedly cutting production plans for its Leaf electric vehicle due to a battery shortage, as reported by Nikkei. Concurrently, KLM (AF.PA) has announced the cancellation of approximately 100 flights scheduled for Wednesday due to a strike by ground crew, according to ANP.
Finally, China Shenhua (1088.HK) reported its August coal sales volume at 37.5 million tons. The Chinese government is also taking steps to stimulate its domestic economy by offering interest subsidies for consumer loans, a move reported by CCTV. This policy aims to boost consumption and support the services sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.