The Eurozone has grown at the weakest pace in six months, according to data released yesterday. The Eurozone PMI Composite Output Index fell to a six-month low of 55.8 for July, from 56.3 in June, whilst the manufacturing sector slowed from 57.4 to 56.8, hitting a three-month low. The growth within the service sector remained unchanged. Individual PMI figures were also released from two of the biggest Euro countries; France and Germany and showed their growth was also slowing down, with only France’s manufacturing PMI posting better than June. The Euro was little unchanged by the readings as a measurement of over 50 still shows expansion within the sectors and the Euro continues to trade at two year highs against the Dollar.
US President Donald Trump continued to make headlines yesterday. Markets were concerned to learn that there will be a further investigation into Trump’s financial dealings. Adding to the concerns was the announcement that former Trump campaign Chairman Paul Manafort, will be interviewed by the Senate Intelligence Committee on Wednesday. Depending on what is discovered Wednesday, we could see some sharp moves in the Greenback today as rumours and speculation around Manafort’s hearing dominate market movement.
A relatively light economic docket today, with limited high tier data releases. Germany will release their Ifo Business Climate report this morning and the monthly CB Consumer Confidence report will be released from the US later in the afternoon, both forecast to post lower than the previous reading.