EU economic data, auto stocks in focus during today's European session

In an attempt to prevent a deepening of the trade conflict, Cecilia Malstrom, the EU Trade Commissioner, offered the US for both sides to eliminate all auto tariffs. President Donald Trump refused the offer, however, saying that Europeans' buying habits are such that they always will purchase European automobiles. He is likely to seek further concessions from the EU before agreeing to a reduction of tariffs. Earlier today we discussed the possibilities for gains after today's shift in fundamentals: here.

Meanwhile, Ewald Nowotny from the Austrian central bank said that Italy is an especially difficult problem for central bankers, describing its growth as "stragnation".

Nowotny believes that ECB should aim to increase rates in the near-term in order to have the needed margin to decrease rates when the EU economy slows.

Today we will track the data for inflation and unemployment from the EU at 12:00 Bulgarian time. At 11:00 we will track the data for unemployment and GDP for Italy. The data will likely either confirm or rejct Nowotny's comments.

Source: Bloomberg Finance L.P.

Chart: Used with permission of Bloomberg Finance L.P.

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