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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EUROZONE DATA
The Eurozone-wide July flash PMI was weaker-than-expected for both manufacturing and services components – unsurprising given the already-released German data. As such, Bunds saw little additional reaction, but are still +26 ticks today at 132.56, just short of the first resistance at 132.66 (Jul 17 high).
Key themes to note are (1) the Eurozone ex-France and Germany continues to outperform the two largest economies, but (2) services cost pressures across the region remain elevated, even as pricing power limits some of the pass-on to end consumers.
Key notes from the release:
- “The two largest euro area economies continued to underperform the wider region…This performance contrasted with continued growth across the rest of the euro area, albeit the latest increase in output was the least marked since January”.
- Following President Lagarde’s seemingly increased focus on downside growth risks, particularly from net trade: “New export orders (which include intra-eurozone trade) fell more quickly than total new business as firms in the eurozone continued to struggle to secure sales from international clients”,
- “Cost pressures continued to be more pronounced in the service sector than in manufacturing, with services input prices up substantially in the latest survey period”.
- “While the pace of cost inflation quickened in July, output prices increased at a softer pace as falling demand limited company pricing power”.
- “Rates of charge inflation were broadly similar across Germany, France and the rest of the eurozone”.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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