020 7898 0500There was more positive data from the eurozone yesterday as German factory orders came in above expectations. Economists had predicted that they would drop by some 1.5% in September, but they actually grew by 1%. In addition, August’s figures were revised up from 3.6% to 4.1%; the eurozone’s largest economy continues to show signs of economic recovery.
French composite PMI was shown to have increased to 57.4 and the German composite PMI also came in at 56.7. While this was a decline from 57.7 the month previous, any figure above 50 shows growth so it is still cause for celebration. The eurozone services and composite PMI came in slightly above expectation, with the former at 55 when 54.9 was predicted and the latter at 56 when 55.9 was predicted. However, despite the raft of positive data, the euro still weakened against sterling. There’s no definite reason for this, although some of the PMI figures were less than they were a month previous. You never can tell what is going to affect the currency markets!
Today begins with a speech from European Central Bank President Mario Draghi, followed by a raft of retail sales figures from countries within the eurozone, as well as the eurozone itself. Retail PMI is also scheduled for release and the question is whether the recent run of positive data can continue into today.
