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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.
The data calendar remains quiet Tuesday with the only European data release of note being EZ producer price inflation at 1000BST. In the US, factory orders at 1500BST will be closely watched.
EZ producer prices seen at new record high
The annual producer price index rose to a record high of 9.6% in May and markets expect the index to increase further in June to 10.3%. May's increase was driven by a sharp increase of energy prices by 25.1%, followed by intermediate goods prices which rose 9.2%. Material shortages, lack of skilled labour and logistical problems are pushing up factory gate prices in recent months and survey evidence such as the PMIs and the IFO business climate survey suggest this problem continues into the summer months.
Source: Eurostat
US factory orders expected to slow
New orders for manufactured goods increased by 1.7% in May, after easing by 0.1% in the previous month. Shipments, unfilled orders and inventories saw monthly gains in May. In June, markets expect factory orders to rise further, although at a slower pace of 1.0%. Survey evidence suggests an expansion of new business at slower rate as well. The IHS manufacturing PMI saw new orders at the second fastest rate on record in July, slightly slower than May's peak. The ISM manufacturing PMI recorded a small decline of new orders in July, however, the indicator remains well above the 50-mark.
The only speech scheduled on Tuesday is Fed's Michelle Bowman participating in a virtual event.
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.