In response to this morning's strong.....>

DATA REACT: In response to this morning's strong Eurozone flash PMIs, which took

the Eurozone composite to an 82 month high, Economist Chris Hare at HSBC writes

that they may be less reliable than usual because they are so early this month.

The final readings are due on 4 January.

- Secondly Hare says that "the PMIs are offering a somewhat overly optimistic

steer of activity -- according to IHS Markit, the survey provider, they point to

eurozone Q4 GDP growth of 0.8% q-o-q, which looks on the high side"

- Looking forward, HSBC believe that the strength of the Euro will cause EZ GDP

growth to ease over the coming quarters, although this is not yet clear from

strong surveys.

- HSBC finishes with a comment on inflation "The PMI price indices are elevated,

but we suspect much of that is a result of recent rises in oil prices. We think

that rises in domestically generated inflation are set to only be very gradual"