Market movers today
Main event will be euro Flash PMI for October, which provides country details for Germany and France. PMI has been on a declining trend since January and so far has shown no signs of stabilisation. We look for a slightly lower PMI for both manufacturing and service. The slowdown has been centred in the manufacturing sector but some spill-over effect on the service sector is expected. European companies have hit the brakes this year, as inventories were built early in the year and the Ukraine crisis caused new uncertainty. This shock is still working its way through the economy. On a positive note, consumers have not yet scaled back spending. We expect the manufacturing sector to recover in early 2015, as inventories have been cut back and consumption is underpinned by the decline in oil prices.
The US releases PMI from Markit, which is expected to have levelled off slightly from 57.5 to 57. It is still a high level, though, pointing to decent growth in the US economy. Initial jobless claims are also due for release. They fell to a new cycle low at 264k last week and are expected to rebound slightly to around 280k. Overall they point to a robust labour market.
Several important events in Scandinavia today, most notably Norges Bank's rate decision and Swedish unemployment data.
To Read the Entire Report Please Click on the pdf File Below