Macro commentary

Yesterday was rather cool as well as volatility. Ifo showed German business sentiment further decline which stands in line with ZEW’s sentiment and other readings. Data from US came neutral both in case of New Home Sales and Flash services PMI.

AircraftsToday we are focused on Durable Goods Orders. Boeing received plenty of orders for new aircrafts including their newest and most expensive model: 777X . Therefore, we expect broad release to be very robust – some projections mention about 7% while others are as high as 11%. However, such pickup in Boeing orders may also impact next release dragging it down in case of no new orders during next month. Because of this volatility, traders tend to watch core orders instead of a broad measure. Core orders, without transportation are said to rise 0.5% to 0.6%. Note that previous readings were both revised around 1% up.

Conference Board will publish its Consumer Confidence research. Last two months stand for decent increase in sentiment of consumers from 82.3 to 90.9. We expect reading around 89 – 90 in August.

It may appear that calendar is pretty light today but actually markets live events that are beyond calendar scope, i.e. Mario Draghi’s speech that took place in Jackson Hole  points clearly to possibility of introducing a Quantitative Easing in European Central Bank.

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