Eurozone

Week Ahead – Fed meeting and US, UK Q2 GDP likely to heighten rate rise expectations

Posted on July 24, 2015 at 1:58 pm GMT

As monetary policy divergence between the US, UK and the Eurozone comes into focus again, all eyes will be on second quarter GDP data for the US and UK in the coming week, as well as the FOMC meeting where the Fed could hint at a September rate rise. The US will start the week with durable goods orders data out on Monday. Durable goods orders numbers have been mixed for much of the year but are expected to rise [..]

Eurozone PMI points to slow start to third quarter

Posted on July 24, 2015 at 10:22 am GMT

The Markit flash PMI for manufacturing and services activity in the Eurozone showed continued expansion in July. However, the strong momentum seen in the second quarter appears to be waning at the start of the third quarter. Eurozone flash manufacturing PMI fell to 52.2 in July from 52.5 in June, against expectations that it would stay unchanged. Services PMI was also lower, dropping from 54.4 to 53.8, versus forecast of 54.2. The figures are still comfortably above 50 though, indicating [..]

Week Ahead – Kiwi and Aussie in focus on central bank policies; Greece impact on Eurozone PMI seen limited

Posted on July 17, 2015 at 10:56 am GMT

With the Greek bailout deal out of the way for the time being, markets will once again be focusing on data, with PMI numbers likely to dominate at the end of the week. The Eurozone will see the Markit PMI numbers for July released on Friday. Flash manufacturing PMI is expected to stay unchanged at 52.5, while flash services PMI is estimated to have worsened slightly from 54.4 to 54.2. Overall sentiment across the Eurozone appears to be holding despite [..]

Eurozone deal reached on Greek bailout but faces battle in Greek parliament

Posted on July 13, 2015 at 11:13 am GMT

Eurozone leaders and finance ministers finally struck an agreement on Monday morning after non-stop talks lasting 17 hours over the weekend. There were concerns after Sunday’s full EU summit was cancelled because the Eurogroup meeting overran but Eurozone leaders did meet in the evening to push for a deal at an all-night summit. Greece’s latest proposals were initially met positively by the Eurogroup but optimism turned to pessimism after some Eurozone members, notably Germany, Finland and Slovakia, expressed strong doubt [..]

Week Ahead – Inflation and central bank decisions in focus as markets eye positive resolution in Greek crisis

Posted on July 10, 2015 at 12:19 pm GMT

After a turbulent week where the Greek crisis and China’s equities slump dominated market headlines, the focus should return to economic developments and central bankers in the coming week, pending a positive outcome over the weekend’s debt negotiations with Greece and its creditors. It is hoped that the Greek crisis will come to a conclusion next week as Saturday’s Eurogroup meeting is seen as the final deadline for the Greek government to agree to a solution. If an agreement is [..]

Eurozone leaders set to meet on Greek ‘No’ vote but ECB decision also eyed

Posted on July 6, 2015 at 11:05 am GMT

Markets were relatively calm on Monday following the strong ‘No’ vote in Sunday’s referendum in Greece. The terms of the latest bailout proposal put forward by Greece’s creditors was rejected by a wide margin of 61.3%, which took Eurozone leaders by surprise. In a further development, the Greek finance minister, Yanis Varoufakis, resigned from his post as a move designed to smoothen negotiation efforts with the country’s creditors following weeks of acrimonious exchanges between Varoufakis and senior figures from the [..]

Week Ahead – Focus on Greek referendum but industrial output should also draw attention

Posted on July 3, 2015 at 12:24 pm GMT

Important data scheduled to come out next week run the risk of becoming overshadowed by the outcome of Greece’s referendum on the bailout program. Key data on industrial production, trade balance and employment could get sidelined whatever the outcome of the referendum. Negotiating efforts are likely to get stepped up as both the Eurozone and the ECB will be faced with a dilemma if the outcome is a “No”. While a “Yes” vote could lead to political instability as the [..]

Greek referendum decision causes turmoil in markets; Tsipras in last ditch effort to extend bailout

Posted on June 29, 2015 at 10:08 am GMT

The shock announcement on Friday by the Greek prime minister to put the bailout agreement to the Greek public caused turmoil in European markets on Monday. Greek PM Alexis Tsipras killed any hopes of an agreement being reached at Saturday’s Eurogroup meeting after he surprised everyone by announcing a referendum on the latest bailout terms for July 5. It’s been reported that the European Commission had just made an improved offer on the creditors’ bailout proposal before prime minister Tsipras [..]

Week Ahead – US jobs, Euro inflation and UK GDP should detract attention from Greece

Posted on June 26, 2015 at 12:31 pm GMT

Following an uneventful week where economic data took second string to the Greek crisis talks, important data out next week should provide better excitement for the markets. This is not to say that there will be lack of headlines on Greece as the deadline on the IMF’s debt repayments falls on Tuesday (June 30) and depending on the outcome of Saturday’s Eurogroup meeting, further meetings may be scheduled. Apart from the ongoing developments of the Greek negotiations, Eurozone data is [..]

Strong Eurozone flash PMI fails to lift euro

Posted on June 23, 2015 at 10:35 am GMT

The Markit flash PMI data for June showed a strong rebound in Eurozone momentum after disappointing figures for May. Eurozone activity reached a four-year high, while individual figures for Germany and France also showed significant improvement over the previous month. France, where growth had been lagging the rest of the Eurozone for much of the past year, showed the biggest improvement. Manufacturing PMI entered expansionary territory for the first time since April 2014, rising to 50.5 in June from 49.4 [..]

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