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Euro zone industry output is suppressed by Italy and France
In March, euro zone industrial output headed south for a second month in a row due to the fact that output slumped in Italy and France, although revived in the EU’s number one economy - Germany. That’s what data from the EU’s statistics agency revealed on Tuesday.
According to Eurostat, output in the 19 members of the European Union headed south by about 0.3% on the month, which happens to be in line with market hopes, and also by 0.6% year-on-year.
March’ dive followed a 0.1% tumble of the industrial output in February that Eurostat updated upwards from its previously forecast of a 0.2% dive.
However, the first quarter of 2019 was still positive due to the 2 rally reported in January.
In fact, output was suppressed mostly by a 1.0% tumble in non-durable consumer goods, in particular, toothpaste or food because retail sales came to a halt in the EU in March.
Aside from that, output of durable consumer goods, in particular fridges or cars, tumbled by about 0.7% on the month, indicating managers' hopes for a rebound in sales of more expensive items.
Germany's first positive month in the year didn’t appear to be enough to compensate marked doves of output in Italy and France, the EU’s third and second economies, ending up with an overall negative outcome for the euro zone.
The EU’s number one economy, Germany, reported a 0.4% jump, following two monthly dives in a row.
However, output went down by 1.0% in France as well as by 0.9% in Italy. The dives followed jumps in the two previous months in both EU members.
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.
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.
Every week we expect many interesting events that can shake the market.