European stocks edged back into positive territory while Wall Street retreated as Snap shares fell off a cliff after reporting bleak quarterly results. Meanwhile, the euro came under pressure after a key survey suggested the single-currency area could be on the verge of recession due to slumping demand and rising costs.
A bigger-than-expected hike in interest rates by the European Central Bank failed to provide a lasting boost to the euro, as political turmoil in Italy also clouds the outlook. Economic activity in the eurozone plummeted in July, the closely watched purchasing managers’ index, or PMI, showed, with a big drop in manufacturing and consumers’ post-lockdown spending sprees braked by high prices.—AFP
