European manufacturing, services narrow expansion in June, ECB meeting eyed . . . . . . . . . . . . . Euro area manufacturing and services narrowed expansion in June, adding to concerns recovery may be losing momentum. PMI composite of manufacturing and services came in at 52.8 last month from 53.5, unchanged from the preliminary reading. The manufacturing sector’s growth eased to 51.8 in June from 52.2 in May, while the services gauge fell to 52.8 from 53.2. Germany’s composite PMI retreated to 54.0 from 55.6, while the same gauge in France French showed a widening contraction to 48.1 from a preceding of 49.3. Meanwhile, there are concerns amid the low inflation encountering the 18-nation region, where data released this showed that euro area CPI for the year June lingered at 0.5 percent. Later in the day, eyes will focus on the ECB monetary decision after the measures announced on June 5 to stave off any deflationary pressures and bolster banks’ lending. Analyst do not predict today’s meeting to produce something new as it will probably illustrate more details about the measures announced last month. The ECB decided in June to cut its benchmark interest rate to 0.15 percent from 0.25 percent and the deposit rate to -0.10 percent from 0.00 percent. The bank also announced some measures including “further reductions in the key ECB interest rates, targeted longer-term refinancing operations, preparatory work related to outright purchases of asset-backed securities and a prolongation of fixed rate, full allotment tender procedures,” ECB bulletin for June said. “The Governing Council decided to suspend the weekly fine-tuning operation sterilizing the liquidity injected under the Securities Markets Programme,” the bulletin added. As of 08:30 GMT, the EURUSD was little changed to trade around 1.3656 after posting a low of 1.3643. #egyptyard
Posted on: Thu, 03 Jul 2014 09:49:29 +0000
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