Europe is being considered an overriding driving force today in capital markets. This is based on preliminary inflation, the M3, and also sentiment surveys that are focused on ECB’s meeting next week. Added with Russia’s presence in Ukraine in the form of troops, weapons, and tanks as an insurgence guise. This of course may lead to war, and in fact, officials from Lithuania are calling it as such. This is certainly going to be the key focus of NATO’s in very important meeting which is held next week.
A significant 1.8% rise in Money supply and M3 last July compared to June’s 1.6% pace. This represents a third of the monthly increase in ratings of the year-over-year. Lending is at a slow pace but still contracting. In fact, it slowed for five consecutive times last July. Business lending statistics didn’t change and stayed at -2.2% year-over-year. Household lendings were also unchanged at 0.5%. Mortgage lending meanwhile not including the calculations of the TLTRO, improved significantly from -0.4% up to -0.1%.