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Market themes of the Day: UK construction activity opens up the week

What you need to know before markets open
Main themes:
 

  • The economic activity bottomed up in February with the final PMI reading for the Eurozone in February ticking up to 49.3 but remaining in contraction territory.
  • The US manufacturing ISM dipped to an 18-month low of 54.2 in February.
  • Canadian GDP missed the market forecast big time rising mere 0.4% quarterly annualized sending CAD lower about 170 pips to 1.3300 against the greenback.
  • The US President Trump said that the US dollar is too strong, before attacking the Federal Reserve Chairman Jerome Powell, who "likes raising interest rates" on Saturday.
  • The Bank of Japan Governor Kuroda said the Bank needs to pay attention to the risk of financial intermediation lowering due to the monetary stimulus.
  • UK  construction PMI is expected to fall to 50.2 in February, approaching the 50-line dividing the economic contraction from expansion.

Europe

  • German final manufacturing PMI confirmed further dip into the contraction territory with the final reading of 47.6 in February.
  • German unemployment is seen steady at 5.0% in February.
  • The Eurozone manufacturing PMI ticked up slightly but remained in the territory of the economic contraction with February reading of 49.3.
  • The Eurozone inflation rose 1.5% y/y  in February with core inflation missing the estimate while rising 1.0% y/y.
  • Sentix indicator is expected to rise to -3.1 in February.

UK

  • The UK manufacturing PMI fell to 52.0 in February, down from 52.8 in the previous month as Brexit uncertainty weighs on business outlook.
  • The UK construction PMI is expected to remain stuck near 50-line dividing the economic contraction from expansion with 50.2 reading in February.

US

  • The US manufacturing ISM dipped to an 18-month low of 54.2 in February.

Canada

  • Canadian GDP missed the market forecast big time rising mere 0.4% quarterly annualized sending CAD lower about 170 pips to 1.3300 against the greenback.

Author

Mario Blascak, PhD

Mario Blascak, PhD

Independent Analyst

Dr. Mário Blaščák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

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