Yesterday market was very calm. Conflict in Palestine seems to eased for a while, and Banco Espirito Santo bankruptcy seems controlled. Investors are already awaiting the upcoming events this week. Euro is on a backfoot while traders are looking forward to ECB meeting on Thursday.
Today at night Chinese services PMI from HSBC fell to 50.0 from 53.1 previously. It sounds like back to “Chinese slowdown” theme.
Meanwhile, Reserve Bank of Australia left mon pol unchanged with Cash Rate at 2.50%. Governing council noticed an incoming acceleration in housing market and somewhat better employment conditions. However, RBA thinks that sustainable improvement in labor market will take a longer while. In terms of monetary policy, RBA stated, that it’s appropriate to foster balanced growth and inflation will probably stay in 2% – 3% range.
Today we have PMI day and bunch of countries with EMU, UK and USA will release its numbers from services sector. Forecasts in case of UK and EMU are pretty close to previous readings, only Italy may show some clearer mood weakening. Contrary, Credit Agricole says that it expects good PMI results both in Italy and Spain.
Somewhere between PMI readings we will find EMU Retail Sales data which is said to rise 0.4% to 0.5% (prior 0.0%) thanks to strong German consumption.
Today afternoon, we will witness one more release from US – Factory Orders. After good rebound in Durable Goods Orders, Credit Agricole expects positive number 0.6% .
Soon after US session closes, New Zealand releases employment data with headline Unemployment Rate previously at 6.0%. Current estimates are very optimistic pointing out drop by 0.2 pt. to 5.8%, not clear on what grounds, however GDP growth in NZ is one of highest among developed countries so far.
