Eurozone Growth Surprises, Rate Hike Odds Rise Again

The European Central Bank (ECB) is once again considering a rate hike after eurozone business surveys showed a surprise increase in growth. The S&P Global flash Eurozone Composite Purchasing Managers' Index (PMI) rose to 53.1 in September, the highest level in 41 months.

This marks a significant improvement from previous months, with services driving much of the growth while manufacturing held steady. However, there is still concern about inflation, as companies reported rising input costs and selling prices at their fastest pace in four months.

Chris Williamson, an economist at S&P Global, said that these results are consistent with a 0.4% quarterly GDP growth rate and that an October rate hike is 'very much on the table.'

The impact of this news is already being felt in markets, with traders adjusting their expectations for euro rate bets. This can have ripple effects on bond yields and even stock prices, particularly for rate-sensitive assets like utilities and real estate firms.