Free Trial

MNI Global Morning Briefing

MNI (London)
     LONDON (MNI) - The PMI week continues with the releases of euro area
Services PMIs on Wednesday. Spain starts at 0815BST, followed by Italy
(0845BST), France (0850BST), Germany (0855BST), the Eurozone (0900BST) and
finally the UK (0930BST). Moreover, Eurostat publishes data on retail trade at
1000BST. The release of the Non-Manufacturing ISM index at 1500BST is worth
noting in terms of US data releases.
     Spain's services PMI declined by 3.7 points in April to 53.1 from 56.8 in
March. According to the MNI median the index is projected to fall further to
52.4.
     The Italian services PMI registered at 50.4 in April, slightly above the
50-neutral threshold. In May the index is expected to decline by 0.4 points to
50.0. The index fell below 50 in October for the first time since May 2016 and
has remained weak since.
     France's services PMI is expected to register in line with the flash
results of 51.7, which reveal an increase of 1.2 points compared to April's
reading of 50.5. However, May's flash result remains below the long-term average
of 54.5.
     Germany's services PMI registered gains since the beginning of the year. In
April the index rose to 55.7, however, according to the flash estimate the index
has fallen to 55 in May. The final PMI is expected to remain on the flash
estimates level.
     The EZ's services PMI declined in April to 52.8 from 53.3 in March. In May
the index is anticipated to register in line with the flash result, which shows
a marginal decrease to 52.5.
     The services PMI in the UK is expected to increase slightly to 50.6 in May
after a reading of 50.4 in April. The index fell below 50 in March after
remaining above this threshold since August 2016.
     Retail sales are expected to decline by 0.5% on the month in April. Monthly
sales are slowing down since two successive months (Mar: 0.0%; Feb: 0.5%) after
a strong start into the year (Jan: 0.9%). Annual retail sales decelerated in
March and grew by 1.9% in contrast to a growth rate of 3.0% in February.
     The nonmanufacturing ISM reading is expected to rebound to 55.9 in May
after dipping to 55.5 in April. The flash Markit services estimate fell to 50.9,
while the Dallas services reading fell below the breakeven point to -0.3 while
the Richmond Fed services reading fell to 1 from 26.
     Atlanta Fed's Raphael Bostic speaks in Atlanta, Wednesday's highlight in
terms of speeches. Furthermore, the Fed releases the Beige Book ahead of the
upcoming FOMC meeting.
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

To read the full story

Close

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.
}); window.REBELMOUSE_ACTIVE_TASKS_QUEUE.push(function(){ window.dataLayer.push({ 'event' : 'logedout', 'loggedOut' : 'loggedOut' }); });