Amid fears of global market instability Europe started the week with it’s leading stock markets rising.
Investors have thus appeared to somewhat relax their fears of a looming recession. German markets, which have been shrinking, registered the largest gain at 1.1%, while Britain’s FTSE 100 is now 0.9% higher.
The German business community was hopefully after Finance Minister Olaf Scholz passed comments suggesting that a fiscal stimulus package to boost growth could be on the cards. Germany’s economy shrank by 0.1% between April and June.
The Guardian reports Minister Scholz as having said “The last crisis cost us €50 billion, according to my estimates….We have to be able to muster that and we can muster that…The biggest problem is uncertainty, including that caused by the Chinese-US trade war”.
Reports have emerged that the slowdown of Germany’s economy has placed pressure on outgoing chancellor Angela Merkel to break the self-imposed German ‘balanced-budget rule,’ preventing the country from running a budget deficit.
In addition to the somewhat-bleak outlook of European markets, US President Donald Trump has given comments to various sections of the press saying that he does not believe the country is headed towards a recession.
While unemployment is at an all-time low in America, the President’s controversial relationship with China has led to the introduction of tariffs between the two nations, having a negative impact for both countries.
President Trump once again made headlines on Monday morning by claiming that America is considering purchasing the island of Greenland, a semi-autonomous Danish region. Mr Trump claimed this was being considered due to strategic regions, however both Greenland and Denmark have categorically stated that the former is not up for sale.