Investing.com - Financial Markets Worldwide

Danske Daily: Market Movers - ECB, Euro Area PMIs, BOE

ByDanske Markets
Published 08/01/2013, 07:03 AM
Updated 05/14/2017, 06:45 AM
Market movers today

Today's ECB meeting will be interesting although a rate cut seems unlikely. Draghi could counter rising money market rates with a refinancing rate cut but the case seems less clear-cut now than a month ago. With data continuing to improve, PMI signalling growth and consumer confidence at the highest in two years we think that a rate cut is unlikely. Draghi will almost certainly repeat the forward guidance given last month. The market is likely to react positively if Draghi specifies this and e.g. says that 'an extended period is more than 12 months'. Draghi said yesterday that the publication of the minutes from the ECB's Governing Council meeting is an 'important next step'. We expect an announcement on increased transparency today.

Final euro area PMIs will most likely confirm that the euro area is moving from recession to slow growth. The most interesting will be to what extent Spain and Italy follow suit. We expect further signs of improvement in Spain, while Italian data appear more likely to remain downbeat.

We expect the ISM manufacturing index to increase to 52.5 from 50.9 suggesting a pickup in manufacturing activity in July. Regional PMIs suggest a small improvement and the preliminary Markit PMI showed a similar increase in July.

Finally, we should not forget the BoE meeting. As in July we look for unchanged rates and asset purchases, not least as the UK numbers continued to improve in July. The question is whether there will be a press release like in July despite no policy changes being expected. We might also get a few more details about the planned 'forward guidance policy'. Officially all details will be released next week.

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.