German manufacturing production likely to continue to oscillate up - TDS

Research Team at TDS, suggests that they’re looking for German manufacturing production to continue to oscillate up and down just as it’s done all year.

Key Quotes

“So after the -1.2% M/M drop in July and yesterday’s stunning manufacturing shipments data, we look for a 3% gain in August (consensus 1%). The recent turn higher in the manufacturing PMI and the IFO points to a slightly stronger manufacturing outlook from here, with perhaps even a chance of seeing two months in a row of expansion, something we haven’t seen since Dec-Jan.

Also of note today, Italy’s sovereign debt is to be rated by Moody’s after market close (currently Baa2 and stable). This may draw a bit more attention the Italy’s political risks and banking issues.”