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On Tuesday we have witnessed once again the effects that the US-China trade war has on the world’s economies, and this time Germany was effected. The ZEW economic sentiment fell to a negative 24.7 in October, as opposed to the expected 12.3. This month’s reading has matched the July’s level, which was the lowest since 2012 and the biggest influence for the drop was the growing concern over the US-China dispute, as well as Brexit. The 14.1 point decline was unexpected and it is even stronger than the aftermath of the vote in 2016 for the UK to exit the European Union.

Furthermore, towards the end of the week, policy makers and global investors will receive a reminder of the costs of the US-China trade war, where Reuters poll is predicting that the Chinese 3rd quarter growth will drop to its weakest pace since the global financial crisis of 2007 – 2008. The poll has also showed that the GDP growth slowed from the previous 6.7% to 6.6% in the months July throughout September and has come ...


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