Eur/usd - page 177
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French manufacturing activity contracts further in October
Manufacturing activity in France contracted at a faster rate than expected in October, fuelling concerns over the economic outlook of the euro zone’s second largest economy, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary French manufacturing purchasing managers’ index fell to a seasonally adjusted 47.3 this month from a final reading of 48.8 in September. Analysts had expected the index to dip to 48.5 in October.
Meanwhile, the preliminary services purchasing managers’ index declined to an eight-month low of 48.1 this month from 48.4 in September and worse than expectations for a reading of 48.2.
The seasonally adjusted Markit Flash France Composite Output Index, which measures the combined output of both the manufacturing and service sectors fell from 48.4 in September to an eight-month low of 48.0 in October.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “The French economy remained stuck in reverse gear in October, as crumbling demand dragged activity lower."
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German manufacturing PMI returns to growth – EUR/USD bounces up
German manufacturing PMI stands at 51.8 points, better than expected. Services PMI slightly disappoints with 54.8 but the composite is OK at 54.3 points. Manufacturing is critical here, and the return to growth territory adds some confidence.
EUR/USD is bouncing back up to 1.2640.
Markit’s manufacturing PMI for Germany was expected to slide from 49.9 to 49.6 points in October. The services PMI carried expectations for a drop from 55.7 to 55 points. The 50 point mark separates growth from contraction. These are preliminary numbers. Last month, the manufacturing PMI was eventually downgraded to just under 50 points – to minimal contraction.
Euro zone consumer confidence -11.1 vs. -12.0 forecast
Consumer confidence within the euro zone fell less-than-expected last month, industry data showed on Thursday.
In a report, European Commission said that Euro zone consumer confidence fell to an annual rate of -11.1, from -11.4 in the preceding month.
Analysts had expected Euro zone consumer confidence to fall -12.0 last month.
EUR / USD moved up denoting what brought the PMI data for October.
The numbers were above the neutral level for the 16th consecutive time.
The preliminary composite PMI of the euro zone - covering the sectors of industry and services.
Unexpected was the rise of the German PMI industry.
EURUSD initially fell during the yesterday session, but found enough support at 1.2613 to reverse and move up towards the end of the day to form a Doji Cross. The fact shows that the market is indecisive, essentially trying to digest its next move in this region. The pair is still in a well-established bearish phase. However, the most important thing to pay attention is the area between 1.2868 and 1.31, as it is such a massive resistance barriers.
German Gfk consumer climate 8.5 vs. 8.0 forecast
Germany’s Gfk consumer climate rose unexpectedly last month, data showed on Friday.
In a report, research group Gfk said that its index of Germany’s consumer climate rose to 8.5, from 8.4 in the preceding month whose figure was revised up from 8.3.
Analysts had expected Gfk consumer climate to fall to 8.0 last month.
thanks for the news
That is interesting news for today the news.
Thank you.
Stagnating euro zone seeks to persuade Germany to shift
Euro zone leaders sought on Friday to bridge stark differences over how to avoid economic stagnation and deflation in the bloc, with Germany facing fresh calls to soften its budget rigor and spend more.
With a U.S.-style bond-buying plan by the European Central Bank off the table for now, the bloc has few options, leaving other euro zone leaders to tread a careful line between the opposing growth and austerity camps.
"It's very important to find a balance between growth and stability," Finland's Prime Minister Alex Stubb said as he arrived at the second day of an EU summit at which ECB President Mario Draghi will address leaders.
After the euro zone's revival came to a halt in the second quarter, France and Italy want to shift course away from the spending cuts that marked the bloc's response to 2009-2012 crisis, but Germany says debt discipline must continue.
The euro zone's poor performance is becoming a wider concern, with the United States and the International Monetary Fund worrying that the bloc that makes up a fifth of the world economy is a drag on global prosperity.
The debate is complicated by EU rules that seek to keep country's public finances in order and Germany's promise to balance its books next year for the first time since 1969.
The European Union's top economic official renewed the charge against Berlin, saying that without investment the future was bleak for Europe's biggest economy, even if it is stronger than most.
"All euro area countries have shortages in potential growth, including Germany," said Jyrki Katainen, the European Commissioner who will become the bloc's growth tsar from November, tasked with bringing down near record unemployment and sinking investment.
"Germany's potential growth is currently 1.5 (percent). This is far too low," he told reporters.
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25 Banks Said To Fail European Stress Test, 10 In Talks On Capital Shortfall
With the results of Europe's annual AQR, aka Stress Test, due out on Sunday, most had been expecting that despite some rhetoric that various brand name banks may fail, that it would be largely more of the usual: puff. That, however, may not be the case, and as Bloomberg just reported, a whopping 25 banks are set to fail the stress test, compared to 105 which are set to pass. As Bloomberg notes:
Note: the outcome is fluid and somehow still pending negotiation, some 48 hours before the announcement. How that makes the test any more credible is beyond our meager comprehension skills. More importantly, as we noted earlier, stress test failures means more ECB bailouts. Which is, of course, bullish.
Then again, some bad news for the panic-buying vacuum tubes - contrary to some expectations, notably the Fed's, Deutsche Bank will not get a multi-trillions bailout and in the process make George Soros a trillionaire: from Reuters:
But apparently has no problem leaking.
source