European stock markets and the dollar recovered Monday after big pre-weekend falls caused by concerns about the health of the US economy, but Asian equities declined further.
In Europe, investors awaited an expected interest-rate cut from the European Central Bank on Thursday.
The European Central Bank is set to cut eurozone borrowing costs once more as inflation in the single-currency bloc drifts back towards the ECB’s two-percent target.
“Wage pressure has been a key driver of eurozone inflation this year, and now that it is retreating it could allow the ECB to embark on a prolonged rate-cutting cycle,” said Kathleen Brooks, research director at trading platform XTB.
Global stocks markets slumped Friday following data showing weaker than expected US jobs growth, which raised concerns about the economy.
The data, however, raised expectations that the US Federal Reserve will cut interest rates next week after holding them at a 23-year high …