Market updates on August 23
Will the Fed Chair changes his views during the speech today?
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.
Similar
Market updates on August 22
News is what making the risk sentiment fragile today...
Market updates on August 21
Oil updates and the FOMC minutes are on the agenda
Latest news
Bitcoin dives 14%, slumping below $5,000
On Tuesday, crypto assets dived, with Bitcoin decreasing below the psychologically crucial $5,000 mark for the first time this year…
British inflation tacks on for the first time this year
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
Market updates on June 18
Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.
Deposit with your local payment systems
