US Interest Rate Hike Does Not Hinder Euro Zone Recovery

A new survey shows that the activities of enterprises in the eurozone have increased at the fastest pace in four years in August.

The composite Purchasing Managers Index (PMI) increased from 53.9 in July to 54.3 in August, which is higher than 50.

Williamson believes that the PMI data show that the euro zone economy is expanding at a solid pace and is expected to grow 0.4% in the three quarter of this year.

At least for now, Europe has only recovered asset prices, but has not yet seen the real and sustainable recovery of the real economy. The deep-seated problems such as debt burden, insufficient long-term investment and weak consumer demand in the period of economic prosperity remain to be solved.

Delagi also stressed that the economic recovery in the euro area must be supported by structural reforms.

Because of the possibility of expanding QE, the euro has been traded against the US dollar.

The price is down again and the outlook is bearish.

At present, the biggest suspense in the market is whether the Fed policymakers will start raising interest rates for the first time in nearly ten years at the September 17th interest rate policy conference. The recent global market turmoil has made the Fed's prospect of raising interest rates in September even more complicated.

The Fed also has internal differences. Officials admit that market turbulence will affect the choice of policy timing.

Fisher, vice chairman of the Federal Reserve, also said that before the global stock market crash, the Fed had "strong reasons" to raise interest rates, and today it is still watching the situation.

Futures market traders expect the Federal Reserve to raise interest rates about 30% this month, down from more than 50% before the global market turmoil last month.

The interest rate futures market shows that the Fed is likely to raise interest rates in October and December.

S & P is expected at the weekend.

The interest rate hike is expected to be postponed to December, and due to the accumulation of worries about China's economy, the returns of all rating categories are negative. The slowdown of China's economy has a serious spillover effect on commodity related asset classes. With the increase of the Fed's interest rate, the volatility of bonds will intensify.

IMF President Lagarde also publicly shouted at the weekend's G20 finance ministers' meeting. The Fed should be cautious about pushing up interest rates. It is best to take practical action after making sure that economic data are absolutely confirmed, price stability and employment data do not exist uncertainties.

The market expects the fed to raise interest rates will lead to greater capital from emerging markets and

Flow to us dollar assets, thereby creating a fragile economic growth.

However, in the view of Markit Chris (Chris Williamson), the situation is not so pessimistic. There have been some "unnoticeable growth" within the eurozone economies.