Jakarta, CNBC Indonesia – European stock markets strengthened compactly on Wednesday (20/10), this is certainly a good sign after the majority of Asian stock markets also rose. Moreover, if the US stock market follows in the green zone, the Jakarta Composite Index (JCI), which is on holiday today, will certainly receive an injection of energy tomorrow.
According to data from Refinitiv, Germany’s DAX 30 index as of 18:40 WIB was up 0.12%, then Britain’s FTSE 100 and France’s CAC 40 were up less than 0.1%. The strengthening is indeed slight, but at least shows that market participants’ sentiment is still quite good.
Economic data from the UK today shows inflation in September grew 3.1% year-on-year (YoY), slightly slowed down from the previous month’s 3.2% YoY.
Dean Turner, economist at UBS Global Wealth Management said while inflation was slowing, it was still well above the Bank of England’s (BoE) 2% target, and would not make the BoE delay raising interest rates.
Meanwhile, the surprise came from the European Central Bank (ECB). ECB board member Jens Weidmann, who is also Governor of the German Central Bank (Bundesbank) announced today that he will step down from his post at the end of the year.
Weidmann is an influential figure in the ECB’s monetary policy decisions, and has been in office since 2011.
The exact reason for resigning was not stated, he only mentioned personal reasons.
“I have come to the conclusion that, after more than 10 years, now is the right time to turn over a new leaf, for the Bundesbank, as well as for me personally,” Weidmann said in a letter to Bundesbank employees quoted as saying. CNBC International.
Weidmann is known as a conservative and inclined board member hawkish namely the direction of a tight monetary policy, in this case an increase in interest rates.
Weidmann’s resignation from the Bundesbank automatically also resigned from the ECB. The central bank led by Christine Lagarde is in a dilemma, because inflation in the euro zone is high, while the economic recovery is still not optimal.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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