The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
Euro zone factory activity shrinks faster in March
In March, factories in the euro zone demonstrated their worst performance for nearly six years, while forward-looking gauges pointed to downbeat times in the future, according to a poll, which is a dismal outcome for ECB policymakers.
As a matter of fact, IHS Markit's March final manufacturing Purchasing Managers' Index headed south for an eighth month, hitting 47.5 in contrast with February's reading of 49.3, which is below a flash forecast as well as its lowest outcome since April 2013.
An index gauging output change, feeding into a composite PMI due on Wednesday – considered to be a perfect indicator of economic health – headed south from 49.4 to 47.2 that appears to be its lowest value since April 2013 and also the second straight month it has slumped below the 50 mark, which divides contraction from surge.
The downbeat outcomes showed up after the ECB had its outlook changed in March. Apparently, it pushed back the timing of an interest rate lift until 2020 at the earliest and also told it would offer financial institutions another round of affordable loans to stimulate the euro zone economy.
In March, a Reuters survey discovered that the ECB might have missed its opportunity to have interest rates lifted before another downturn.
Friday's PMI guessed that downturn was actually underway. So, new orders headed south at their fastest tempo for more than six years, while factories decreased purchases of raw materials because they had unsold products stockpiled.
Upbeat mood as for the coming year weakened steeply. As for the future output index, it inched down from February's 56.7 to 55.5, which appears to be its lowest outcome since December 2012, so factories ramped up headcount in March.
The Eurozone will publish the Indicator of GfK Consumer Confidence on November 25, at 09:00 GMT+2.
Euro Zone will reveal the ZEW Economic Sentiment index at 12:00 MT (GMT+2) on Tuesday, November 9.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.