Today, a string of services PMI reports from across the globe have taken the spotlight. Britain’s services PMI data that came in just now showed that growth in services sector activity unexpectedly dropped for September. Looking ahead, BoE’s interest rate decision along with the accompanying meeting minutes due later this week will attract significant market interest.In Europe, September’s survey showed easing of business activity at services firms in the Euro zone and most of its economies, fuelling doubts about growth prospects in the final few months of the year. Across the Atlantic, final services PMI and ISM non-manufacturing PMI reports are on the cards while the labour market conditions index will also be closely eyed.
In today’s session, all eyes will be on whether the US employment report supports the case for the Fed to raise its interest rate this year, amid the recent rout in financial markets that has threatened to dent growth and depress inflation. The September payrolls report is anticipated to show that US employers added jobs at a robust pace, signalling that the nation’s labour market continues to strengthen.Data released just now which indicated that UK‘s construction sector experienced better than expected activity growth in September, was reassuring for the British economy. Meanwhile, the ECB Chief last night stated that the Euro area is returning to sustained growth aided by the central bank’s aggressive monetary policy.
The first session of the fourth quarter has commenced with the release of several manufacturing purchasing managers’ indices in the major economies. In the UK, the latest manufacturing PMI report showed that the sector remained weak, with activity expanding at the slowest pace in three months for September.In Europe, the PMI numbers revealed weakness in the manufacturing sector for Germany, Italy and Spain with only France showing a slight improvement in factory activity for September. The picture could be similar across the Atlantic, with the ISM and final Markit manufacturing PMI data in the US expected to post weak readings for the previous month.