After a light macroeconomic calendar yesterday, market participants today woke up to a raft of flash manufacturing and service Purchasing Managers’ Index (PMI) releases from across the Eurozone. In France, while the manufacturing PMI disappointed this month, service sector activity registered a rise. However, the German economy exhibited the opposite pattern for August, with the services sector recording its weakest performance in fifteen months. Investors now await the Euro region’s consumer confidence index data for August, due later in the day. In Britain, the Confederation of British Industry (CBI) will come up with its industrial orders data for August in a few hours, while across the Atlantic, manufacturing PMI for August and the July report on new home sales are up for release.
Today, all eyes will be on the US Federal Reserve (Fed) Chairwoman, Janet Yellen, as she takes the stage as keynote speaker at the annual economic policy symposium in Jackson Hole, Wyoming. Her choice of words today will be all the more significant as market players weigh up the pros and cons facing the US economy, and whether another near term interest rate increase in on the cards. Interestingly, Janet Yellen’s speech will follow closely on the heels of the latest US second quarter GDP data. The curtains will come down on the conference today with a panel discussion involving the Bank of Mexico Governor, Agustin Carstens, the European Central Bank Executive Board Member, Benoit Coeure, and the Bank of Japan Governor, Haruhiko Kuroda. In other parts of the globe, the just released second estimate of UK’s GDP for the second quarter confirmed its preliminary figure. In Germany, the GfK’s consumer sentiment index showed that consumer confidence is likely to improve in September.