Europe & US dominate announcements
Quite a busy Monday for markets with a number of announcements slated for release later tonight and in the early hours of tomorrow morning.
Europe is set to publish a host of data related to the Services sector. The data includes: Italian & Spanish Services PMI’s, German & French Final Services PMI’s and European Final Services PMI. These figures are significant as the services sector is an important part of the European economy, as well as the individual countries within Europe. With Europe still in the midst of economic recovery, policymakers need to see continual improvement in the economy before they give any thought to tightening monetary policy.
The US is also reporting some important economic figures. The figures being released includes: Revised Non-Farm Productivity, Revised Unit Labour Costs, Final Services PMI, ISM Non-Manufacturing PMI, Factory Orders and Labour Market Conditions. The most significant figure is the Non-Manufacturing PMI. As the manufacturing sector has been severely weakened over a number of years in the US (a trend that Donald Trump wants to reverse), much of the economic slack is taken up by those non-manufacturing sectors. Therefore, it is crucial that the non-manufacturing sector remains strong in times of economic malaise.
Elsewhere around the world, the UK is publishing vital Services PMI data. Finally, Germany, France, Switzerland and New Zealand all have bank holidays today.