(MENAFN– ecpulse) European markets brace for a bundle of services PMIs and euro-area GDP preliminary estimate for the second quarter Wednesday, in a very heavy calendar ahead of the European Central Bank`s policy meeting due on Thursday.
In the euro area, gauges of Purchasing Managers` Indexes (PMI) are expected to confirm the rate of growth across the services sector accelerated in August. Earlier this week, Eurozone’s manufacturing PMI was positively revised.
- France PMI services likely widened contraction at 47.7 vs. 48.6
- Germany PMI services likely rose to 52.4 from 51.3
- Eurozone PMI services probably expanded to 51.0 from 49.8
- Eurozone PMI composite expected to remain unchanged at 51.7
Data released earlier this week showed Eurozone manufacturing sector expanded in August, as factory activity picked up in Spain and Italy that have suffered long downturns amid the region`s fiscal crisis.
Growth accelerated in Germany, the euro zone`s largest economy, where manufacturing sector showed a widening expansion to 51.8, below the initial reading of 52.0, from a prior of 50.7. The Eurozone PMI for manufacturing rose to 51.4 in August from 50.3 in July.
Looking ahead as well, Eurozone’s seemingly never-ending recession may be brought to close as Eurostat is expected to show the economy eased pace of contraction at 0.7 percent in the year ended second quarter, from 1.1 percent contraction in the first quarter.
On quarterly basis, Eurozone is expected to remain unchanged from the flash estimates of 0.3 percent growth, a significant turnaround from the previous 0.2 percent contraction.
Investors are looking forward to the European Central Bank policy meeting tomorrow, with markets expecting ECB to leave its monetary policies unchanged considering the recent upbeat economic indicators, signaling solid economic recovery in the euro-area,.
Growth report outcome is expected to confirm the European Central Bank`s outlook for the economy. Investors will also focus on the ECB press conference where ECB President Mario Draghi’s comments usually drive the Euro significantly.
In the FX market, the euro extended losses versus the dollar in early trades, trading at 1.31653 after the pair starter at 1.31704. The pair has so far touched a high of 1.31760 and a low of 1.31622.
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