Daily Market Report 04/11/2013


Data from Markit on Friday showed that manufacturing activity in the UK fell slightly in October to 56, missing expectations of a reading of 56.3. The data adds to a recent run of economic data out of the UK that have missed analyst expectations. As a result the pound fell to a week low against the US dollar.


The US dollar drew support from investors following data from the Institute of Supply Management which showed that manufacturing activity rose to 56.4 in October, despite the government shutdown in the first two weeks of the month.

Sentiment on the US dollar may well be changing as the impact of the shutdown on the economy may well not be as bad as analysts were initially expecting with some even speculating that tapering of quantitative easing may start sooner than forecasts of March 2014.


Data from Australia overnight showed that retail sales grew at its fastest rate in seven months, diminishing thoughts of any further interest rate cuts to be made by the Reserve Bank of Australia and thus supporting the Australian dollar. The next scheduled meeting is tomorrow.


Manufacturing output from France, Germany and the Eurozone as a whole may lend some support for the ailing euro with activity set to have expanded further in October.

UK construction activity is forecasted to have dropped slightly in October from September and factory orders for both August and September set to have increased by 1.8%.

Key Announcements:

8.48am – EUR – Markit Manufacturing PMI for France (Oct): Expected to have dropped to 49.4.

8.53am – EUR – Markit Manufacturing PMI for Germany (Oct): Expected to have expanded to 51.5.

8.58am – EUR – Markit Manufacturing PMI for the Eurozone (Oct): Expected to have expanded to 51.3.

9.30am – GBP – PMI Construction (Oct): Expected to remain 58.9. 

9.30am – EUR – Sentix Investor Confidence (Oct): Expected to fall to 6.0. 

15.00pm – USD – Factory Orders (Sep): Expected to have increased to 1.8%.