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.