All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
Euro zone manufacturing surge relieves on trade war fears
In August, euro zone manufacturing surge speeded down to an almost two-year minimum because optimism shrank in the face of soaring worries of an escalating global trade conflict, as a poll disclosed on Monday.
However, the given edition of the poll needs to be treated with great caution. The matter is that it just represents nearly 70% of the usual sample size because slumps of EU factories take a break over the summer months.
In August, the IHS Markit's final manufacturing Purchasing Managers' Index headed south to a 21-month minimum of 54.6 from July's reading of 55.1, staying intact from an initial outcome, and still above the 50 level, separating contraction from surge.
An output index feeding into a composite PMI and considered to be a good indicator of economic health managed to rally from 54.4 to 54.7.
In August, euro zone factories came up with another firm production jump, although prospects declined further because surge of new orders reached a two-year minimum and fears about the outlook intensified.
Forward-looking indicators, including optimism, employment as well as new orders all sank, telling that there would be minor if any pick-up in activity in September.
The future output index, gauging optimism, went down from 62.4 to 61.0, which is its second lowest value since late 2015.
Manufacturers are extremely concerned about an ascending global trade clash. American leader Donald Trump has told aides that he’s about to slap duties on $200 billion more in China’s products.
For the purpose of drumming up demand, EU factories ramped up prices at the weakest rate in a year. On Friday, it was reported that in the European Union inflation declined to 2% the previous month, backing the European Central Bank's assessment that a recent surge might be just temporary.
The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.
The market sentiment deteriorated because of the election uncertainty and worries about rising virus cases all over the world. Let's make some analysis!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.