The eurozone had a mixed session on Friday after economic growth in Germany accelerated slightly in the second quarter on rising exports, but in France it hit the brakes, underscoring the big divergences within the eurozone that threaten its prospects for a sustained recovery.
Germany's gross domestic product grew 0.4 per cent from the previous quarter, falling short of economists' forecasts of a 0.5 per cent gain.
Analysts believe the dissapointing GDP figures that are due to a weaker euro exchange rate, lower oil prices and the European Central Bank's massive stimulus program, which has done little to lift the region onto a higher growth path.
Over the weekend, German chancellor Anglea Merkel went live on national television to express confidence in the IMF's involvement in Greece's third bailout. In an attempt to assuage fears that the bailout for Greece will not have support from international creditors.
Yesterday Bank of England policymaker Kristin Forbes warned keeping interest rates low for too long risks undermining Britain's economic recovery ahead of Tuesdays inflation figure which is expected to show inflation at zero for June.
"With such low inflation today, it is understandable to want to avoid pre-emptively ending this holiday. A solid recovery is finally here. Increasing interest rates prematurely could moderate companies’ willingness to invest and consumers’ willingness to spend. But unfortunately monetary policy works with lags," Forbes wrote in an article yesterday.
On Friday US producer prices rose for a third straight month in July, but inflation pressures remain benign against the backdrop of lower oil prices and a strong dollar. A strong dollar and weaker oil prices are keeping a lid on inflation, which has some economists believing that the Federal Reserve will be hesitant to raise interest rates next month.
There are no key announcements today.