The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
Euro zone industrial output is firmer than anticipated
In January, euro zone industrial output turned out to be stronger than anticipated. That’s what data uncovered on Wednesday. The given outcome became possible do to a considerable contribution from energy. What’s more, it even neglected a tumble in German output.
As the European Union's statistics office Eurostat informed, in January, industrial output in the 19 countries that sharing the common currency managed to tack on by up to 1.4% month-on-month for a 1.1% year-on-year dive.
Financial analysts who were interviewed by Reuters had hoped for a 1% monthly leap as well as a 2.1% annual tumble.
The January outcome was mainly caused by a 2.4% monthly as well as 4% year-on-year rally in energy output that helped to compensate mitigate or compensate the dismal outcomes for capital and intermediate goods production.
In fact, output managed to head north in spite of a decline in Germany, which appears to be the leading economy of the European Union. As follows from Eurostat’s estimate, in Germany, industrial output inched down by about 0.9% on the month that happens to be a higher dive than the 0.8% slump forecast by the German statistics agency earlier this week.
As a matter of fact, huge leaps in Italy and France, which are respectively the third and second economies of the European Union, more than compensated that German data.
As Eurostat informed, in France, output headed north by up to 1.3% on the month, while in Italy, it managed to inch up by about 1.7%.
Meanwhile, the USD index was a bit lower versus rival currencies, demonstrating an outcome of 96.899.
The euro went up by 0.1% hitting $1.13.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…