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.
The main data events Monday are the final services PMIs for Spain (0815BST), Italy (0845BST), France (0850BST), Germany (0855BST), the EZ (0900BST) and the UK (0930BST). There are no data events scheduled in the US due to the Independence Day public holiday.
Europe's services PMIs rose markedly in June
The recently released flash services PMIs all showed a significant increase in June for the French, German and the EZ indices. The French flash services PMI jumped to a 38-month high of 57.4, while the German index surged to a 123-month high of 58.1 in June. The EZ index rose to 58.0, its highest level in 41-month. Markets expect the final prints to register in line with flash results. The uptick was mainly driven by the reopening effect including the continued easing of restrictions and the progress of vaccinations. The EZ flash report noted that business activity in the service sector accelerated at the fastest pace since July 2007. At the same time, prices charged for goods and services rose at an unprecedented rate, as demand continued to outstrip supply.
Meanwhile, the Spanish and Italian services PMIs are also forecast to rise in June to 60.6 and 56.2, respectively. The increase is likely driven by the removal of restrictions and the progress in vaccinations, both allow for international travel within the EU, which provides a boost to the service sector.
UK services PMI seen lower in June
According to the flash services PMI business activity growth is slowing in June. The flash services ticked down to 61.7 in June, down from 62.9 recorded in May. Nevertheless, the index still signals strong expansion of the service sector, driven by the easing of restrictions and higher demand. Markets expect the final reading to register in line with the flash estimate.
Employment improved further in June, with the rate of job creation being only slightly below the record registered 7 years ago. Similar to the manufacturing sector, input prices are rising further in June, which also led to a new record high of selling prices.
The main speakers to follow on Monday include ECB's Christine Lagarde, Andrea Enria and Luis de Guindos.
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.