Positive PMI Results In Europe And Great Britain | Waiting For The Result Of US Nonfarm Payrolls
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In the first half of the day, attention will be paid to PMI reports in Europe. In the second half of the day, attention will shift to the results of the North American labor market.
Retail Sales
The first important data for the market came from Australia at the beginning of the day. the published retail sales report for another consecutive reading remains unchanged at 0.6%.
This means that the demand for manufactured goods in this country remains unchanged, which may be due to the economic situation.
European Services PMI
The largest economies of the euro zone today published their reports for Services PMI. The overall picture is positive.
Spain was the first country in the European bloc to provide a positive report. Services PMI indices reached the level of 49.7 and it was an increase against the expected 48.3 and against the previous reading of 48.5.
In France, the result was also higher than expected (51.3) and reached the level of 51.7. The current reading is much lower than the previous 52.9.
In the largest economy of the European Union, i.e. Germany, this indicator also increased from the level of 45.0 to the level of 46.6.
These three positive readings significantly influenced the European Services PMI score which reached 48.6 and was only 0.2 from the previous reading.
Only in Italy did this indicator drop. The current reading in this country is at 46.4.
UK Construction PMI
For the UK, the most important event of today is the Construction PMI report.
The reading turned out to be really positive. The result for this sector was higher not only than the forecasts but also higher than the previous result. Construction PMI increased from 52.3 to 53.2
ECB President’s speech
At the end of the week, an important speech will be from the European Union. At 10:30 CET, the following spoke: European Central Bank (ECB) President Christine Lagarde. Her comments may determine a short-term positive or negative trend. As the most important person in a European bank, he can provide very valuable comments and guidelines regarding future actions within the framework of monetary policy.
Nonfarm Payrolls
The United States will publish data on the number of people employed outside the agricultural sector. This number is expected to reach 200K.
This forecast shows that the downward trend continues. After March, the number dropped significantly and maintained this trend until it broke out in August which was a false sign of a change in the trend. After a positive August, the decline will begin again. It may be a positive fact that he achieved better results than expected.
Source: investing.com
US Unemployment Rate
The unemployment rate is expected to reach 3.6%. If the results met the expectations, it would mean an increase of 0.1% and thus a return to the level obtained between April and July.
Canada Employment Change
Canada also share the results of its job market.
The outlook for the Canadian labor market is not very good. Employment Change is expected
will reach the level of 10K over the previous 21.1K. The latest reading was a positive reflection from the negative levels from previous periods, but it may turn out to be one-off. Although expectations are above zero, it is not a good picture of the Canadian economy.
The unemployment rate can reflect this as well. The unemployment rate is expected to increase by 10 porcet points to 5.3%.
Summary
- 1:30 CET Australia Retail Sales (MoM)
- 9:15 CET Spanish Services PMI
- 9:45 CET Italian Services PMI
- 9:50 CET French Services PMI
- 9:55 CET German Services PMI
- 10:00 CET EU Services PMI (Oct)
- 10:30 CET UK Construction PMI
- 10:30 CET ECB President Lagarde Speaks
- 13:30 CET US Nonfarm Payrolls (Oct)
- 13:30 CET US Unemployment Rate (Oct)
- 13:30 CET Canada Employment Change (Oct)
Source: https://www.investing.com/economic-calendar/
