Daily Market News 24 May 2011

Market Movers Yesterday

• European & Germany Purchasing Manager Index Services and Manufacturing came out worse across the board yesterday. This saw the Euro tumble in the morning trade reaching 1.1540. This has added to the Euro’s woes of late and EUR/USD reached recent lows of 1.3968.

• There was no data in the UK or US out yesterday.

Market Movers Today

• German GDP was the first piece of data for the day today, these figures came in as expected, better across the board, this could give Euro some incentive to strengthen however it will just go to show the Euro zones reliance on their strongest economy.

• European IFO – Expectations & IFO – Business Climate are both expected out stronger than previous and should they come in stronger we should see the Euro gain some much needed momentum.

• UK: Public Sector Net Borrowing is expected to have been reduced by a staggering £12B! Should this come out as expected investors will certainly be given a reason to place their money in the UK. 

• US New Homes Sales are expected to come in considerably worse than previous with a 10% drop from previous, this is a concern for the US as it is still the case that a weaker job market and housing market is holding them back from full recovery.