There are hopes Germany will ditch its obsession with running a balanced budget.
Stock markets across Europe have risen on hopes of a stimulus after Germany's central bank hinted there was a risk of recession.
The FTSE100, Germany DAX, France's CAC and Italy's MIB indexes were all up by more than 1% on renewed hopes of European governments increasing spending to boost growth. It comes after the Bundesbank said Germany's GDP may have continued to shrink over the summer, with its latest data suggesting industrial production fell.
The central bank pointed to a big drop in sentiment indicators for manufacturing firms in its monthly report. It said:"Overall economic performance could again decline slightly. The main reason for this is the continuing downturn in industry."Stock markets were lifted on renewed hopes that Germany would ditch its obsession with running a balanced budget after its finance minister Olaf Scholz said the country could deploy up to €50bn "with full force" to counter any future economic crisis.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Markets rally as Trump plays down recession fears - business liveRolling coverage of the latest economic and financial news, as Donald Trump insists that America’s economy is doing ‘tremendously well’
Read more »
Ryanair strikes: Airline seeks High Court injunction to stop Irish pilot walkoutAirline attempts to prevent Irish pilots from striking this week
Read more »
Poet Laureate says he will not pen verses to mark Brexit on Oct 31 - so Jacob Rees-Mogg offers suggestionsThe Poet Laureate has disappointed anti-European Union MPs by saying he will not produce a poem to mark Britain’s exit from the European Union on October 31.
Read more »
US briefing: recession denials, Prince Andrew and Iranian oil tankerMonday’s top story: Trump and advisers reject warnings of economic disaster. Plus, what has Colin Kaepernick gained from his years in the NFL wilderness?
Read more »
Households cut back on big-ticket spending amid recession fearsPurchases on holidays and cars fall, with UK consumer confidence at lowest ebb in three months
Read more »