Daily Market Report - 02/02/2016

EUR

Monday saw the Markit Manufacturing Purchasing Managers Index (PMI) released for the Eurozone. This came out at a figure of 52.3 matching the previous figure and expected figure for the Eurozone whereas countries such as Germany and Spain saw an increase with Germany increasing from the previous figure of 52.1 to 52.3 and Spain increasing from the previous figure of 52.5 to 55.4. As a collective the Eurozone Manufacturing PMI was positive at 52.3 however lower than December’s figure of 53.2, causing deflation fears to grow within the Eurozone as continuous growth is not being seen in this sector. 

At 4pm Mario Draghi President of the ECB spoke mainly about the annual report of the ECB for 2014. Draghi discussed that the policies put in place by the ECB in 2014 they had expected inflation figures to reach 1.5% in 2016 and 1.8% in 2017. Although these expectations have not yet been met he then went on to say that the policies put in place in the summer of 2014 had been very effective and provided substantial support to the euro recovery area which ‘would have been in outright deflation’ without these measures being put in place.

GBP

The Markit Manufacturing Purchasing Managers Index (PMI) was released Monday morning and came out better that expected at the figure of 52.9, a three month high, increasing from the previous figure of 52.1 and beating the expected figure of 51.8 showing growth within the UK manufacturing sector.

According to news reports, Prime Minister David Cameron and President of the European Council Donald Tusk made a “Breakthrough” on plans to restrict benefits for EU migrants however tthere have been  no agreement on the UK’s four aims; Immigration, Sovereignty, Competitiveness and protection for non-euro countries, as of yet. 

Mortgage Approvals for December showed an Increase from the previous figure of 70.424K to 70.837K beating the expected decreasing figure of 69.600K perhaps indicating potential growth within the housing market.
 

USD

In the United States yesterday the Markit Manufacturing Purchasing Managers Index (PMI) came out lower than the previous figure of 52.7 the initial figure for December. Showing growth at a slower rate within the manufacturing sector, however it has increased from the final PMI reading for December which was 51.2. This recent figure of 52.4 was still the second lowest since October 2013.
 

Key Announcements

GBP: 09:30 – PMI Construction (Jan) expected to fall from 57.8 to 57.6