020 7898 0500Yesterday’s release of Purchasing Managers Index (PMI) data from the Eurozone struggled to match the wave of positivity we saw at the beginning of the year. Germany saw manufacturing PMI exceed expectations, but the figure for services (as well as a composite PMI number) fell below forecast – these results were mimicked by the Eurozone as a whole. France saw it’s composite and services PMI figures beat expectations, while the French manufacturing result was in line with forecasts. Despite the mixed results, it must be noted that all of the PMI data releases in the single bloc denoted growth in the surveyed sector. The euro’s (EUR) behaviour matched this fact, losing ground during the day, but recovering at the close of the trading session.
Today sees Germany take centre stage with a raft of economic releases. The IFO Business Climate Index, a well-regarded indicator of business sentiment by investors, will be released, as will a long-dated (30 year) bond sale. Any drastic change in pricing of this debt could result in investor’s changing inflation expectations.
