EZ PMI: No major change expected - Wells Fargo

On Monday, the key report will be Eurozone PMI. According to analysts from Wells Fargo, the index is expected to show no major change, so they warn that any change could be market moving. 

Key Quotes: 

“ECB President Draghi made reference this week to the “robust recovery” going on in the Eurozone. For financial markets that were expecting dovish undertones out the ECB, the more neutral assessment of the Eurozone’s economy spooked the stock market.”

“When bourses open on Monday of next week in Europe, investors will get the pulse of business activity for July when the preliminary survey results for manufacturing and services. While the PMIs have been in expansion territory for the past four years, only recently have they broken north of 55. This represents the fastest pace of expansion since the relief rally in 2011, which followed the European sovereign debt crisis of a year earlier.”

“In the latest print, the manufacturing PMI rose while the service sector gave up some ground. No major change is expected, which suggests any change we do get could be market moving.”