October Rate Hike in Play as Flash PMIs Shine
The European Central Bank (ECB) is now more likely to raise interest rates in October after the release of flash PMIs showed strong manufacturing growth and a return to expansion for services in Germany and France.
According to the data, manufacturing is in its best run for over four years due to increased AI and defense spending. This has put pressure on the ECB to follow suit with other major central banks and raise interest rates to control inflation.
Nagel, a key figure at the ECB, has indicated that he is not opposed to an October rate hike, further increasing speculation about a potential move.
In related news, Meta's AI-powered agent, Muse, has been gaining traction after reaching 2.8 million downloads in just 12 days since its launch on September 8. The success of Muse has led to a significant increase in Meta's share price, with the company's valuation rising by over $200 billion.