Market Movers
The eurogroup meets at 15:00 CET today to discuss the third aid package for Greece. While the agreement is expected to be approved by the finance ministers it is not yet a done deal. Germany continues to prefer a temporary bridge loan to give more time to negotiate a final agreement. It also fears that the IMF will not in the end be able to participate due to its concern about debt sustainability.
The key release today is euro area GDP growth for Q2. It will be preceded by the release of Q2 GDP growth for Germany, France and Italy, so the market will have a fairly good idea of the outcome before the publication. For the euro area as a whole, we expect Q2 GDP growth to be 0.4% q/q, ie the same as in Q1. Growth in private consumption is expected to have slowed a bit while exports are expected to have improved slightly supported by the weaker EUR.
In the US, preliminary University of Michigan consumer confidence for August, producer prices for July and industrial production for July will be released today. So far, consumer confidence has been moving broadly sideways at a decent level in 2015 and we expect this trend to have continued in August. With inflation in focus, producer and import prices should provide some important information on the underlying price pressure on goods prices.
Data on Swedish service sector today.
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