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French and German business confidence has fallen sharply, boosting the chances of a fresh interest rate cut by the European Central Bank in September amid signs the Eurozone’s two largest economies are set for a downturn.
German two-year bond yields fell 0.04 percentage points to a five-month low of 2.67 per cent on Thursday, as traders increased their bets the ECB would respond to signs of a weakening economy by lowering interest rates at its next meeting on September 12. They later rose back to 2.7 per cent after the…