The European unemployment rate will be announced on Thursday at 12:00 MT time.
Eurozone GDP surge in the first quarter speeds down to 0.4%
In the first quarter of this year the economy of up to 19 eurozone countries tacked on by 0.4%, according to preliminary data from the Statistical Office of the European Union.
The rate of surge turned out to be the weakest since July-September 2016. The slowdown in the surge of the European economy, which is largely connected with trade risks, definitely complicates the task of the European Central Bank, which is closely watching the prospects for cutting incentive measures. Compared with October-December 2016, the EU’s GDP managed to surge by 2.5%.
The growth rates of both indicators actually coincided with market hopes.
According to updated data, in the fourth quarter of the previous year, GDP in the euro area tacked on by 0.7% versus the previous three months and also by 2.8% year-on-year. Well in both cases GDP rallied by 0.1 percentage points more than previously uncovered (0.6% and 2.7% respectively).
Weakening of surge in January-March was also provoked by unfavorable weather conditions as well as other temporary factors.
The surge of exports speeded down, and some companies blame the strengthening of the common currency.
In France, GDP managed to tack on by approximately 0.3% in the first quarter after a leap of 0.7% in October-December. Secondly, in Austria there was a weakening from 0.9% to 0.8%. Then, in Belgium it inched down from 0.5% to 0.4%. Furthermore, Italy and Spain maintained the same surge rates as a quarter earlier: respectively 0.7% and 0.3%. Germany is anticipated to uncover a preliminary estimate of GDP surge in the first quarter on May 15, so it will show up on the same day with updated data on GDP dynamics in the euro zone.
In quarterly terms, economic surge in the euro area has been lasting for up to 20 quarters in a row.
The market sentiment deteriorated as the USA and some other countries are suffering from the new virus resurgence. Investors worry that the economic reopening may be delayed.
The Eurozone Manufacturing PMI will be published at 11:00 MT Time on June 23.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.