(MENAFN- ecPulse) European markets are about to welcome a bunch of services PMIs and euro-area GDP preliminary estimate of the first quarter in a very heavy calendar ahead of the European Central Bank`s policy meeting tomorrow.
In the euro area, gauges of Purchasing Managers` Indexes are expected to confirm the rate of contraction across the services sector in May. Earlier this week, manufacturing PMI was positively revised.
- Spain PMI Services (MAY) 45.3 vs. 44.4
- Italy PMI Services (MAY) 47.5 vs. 47.0
- France PMI Services (MAY) 44.3 vs. 44.3
- Germany PMI Services (MAY) 49.8 vs. 49.8
- Euro Zone PMI Services (MAY F) 47.5 vs. 47.5 from 47.0 in April
- Euro Zone PMI Composite (MAY F) 47.7 vs. 47.7 from 46.9 in April
- Euro Zone GDP (QoQ)(1Q P) -0.2% vs. -0.2%
Looking ahead as well, official data are expected to confirm the rate of euro-area contraction, at 0.2 percent in the first quarter, marking the longest period of contraction in activity since the euro was introduced in 1999.
The situation in the euro-area economy remains unsound, but the bloc is expected to see recovery by the end of 2012. The European Central Bank stated previously it doesn’t expect much improvement heretofore.
Despite few signs of a possible materialization, a six-quarter contraction in the 17-nation euro bloc has left the ECB with no choice but to cut the benchmark interest rates to a record low of 0.50 percent last month.
Economists believe the record-long recession will end in the second quarter, although the euro-area manufacturing sector continued to shrink in May, but at a slower rate than expected, signaling the economy is balancing.
Any positive revision on the growth rate would surely have a positive impact on the market and the single currency, however the euro-area`s GDP seems to be bound to the negative territory, thus we shouldn`t expect any surprise today.
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