During the previous week, markets continued following their downward trend. The global economic situation continues to deteriorate and, it seems, nobody is hoping that the situation will somehow noticeably improve by the end of the year.

Statistical data reflected the impact of anti-Russian sanctions on the euroarea economy. In Germany, orders of industrial companies dropped 5.7% in August 2014 compared to the previous month, which is a record-low decline since January 2009. In August 2014, German exports shrank 5.8% compared to the previous month, which is also a record-low drop since January 2009. Chairman of the Board of UBS AG, a Swiss global financial services company, and former President of the Deutsche Bundesbank, the Federal Bank of Germany, Axel Weber is convinced that worsening indicators are the result of sanctions instituted against Russia. Before the institution of sanctions, exports to Russia covered 1.4% of Germany’s GDP.

Financial markets survey 13.10.2014