Germany is the first data on our calendars today, since it is the biggest economy in the EZ; where their PMI manufacturing for the month of October's final reading is expected to come in at 51.1 unchanged from the preliminary reading.
The euro zone is releasing its PMI manufacturing for the month of October final reading coming in at 50.7, as projections reveal, which is also inline with the preliminary reading.
Although the sectors are slightly expanding, this is supporting the fact that the recession is easing around the world despite exports still being weak in the 16-nation region led from the crippled domestic and international demand.
If the industrial data is released and shows that the sectors are showing more enhancement; it will provide us with evidence that the ECB non-standard measures of buying 60 billion euro-dominated bonds, are stimulating economic growth in the euro zone.
In the euro zone;the main focus is set on boosting economic growth, especially since exports have been negatively affected from the ongoing recession in different regions around the world, which led to dampened demand. As the central bank buys bonds, it is providing markets with liquidity that would help the 16-nation area prosper, especially as they continue to contract.
The second biggest economy in Europe, the United Kingdom, is also releasing its manufacturing data in which this sector represents nearly 15% of the GDP and is observed carefully for evidence of how the dominate sectors are being impacted by the recession.
PMI manufacturing is to be released, showing that in October it will improve to 50.0 from the prior contraction of 49.5; thus hinting that the sector is struggling to expand, since production output is weak led from the current economic deterioration.
The focus in the UK this week is on the rate decision and the central banks asset purchase program; interest rates are projected to remain steady at 0.50%, while from our point of view, the program should be expanded especially in the third quarter, as the nation contracted by 0.4 percent meanwhile it was forecasted to expand.
The European stock markets ended the session last week in loss; the DJ Euro Stoxx 50 shed 81.28 points or 2.88% to 2743.50 points; CAC 40 fell 106.33 points or 2.86% to 3607.69 points; while DAX dipped 172.49 points or 3.09% to 5414.96 points.
