Eurozone PMIs and US ISM manufacturing amongst market movers today – Lloyds Bank

Hann-Ju Ho, Research Analyst at Lloyds Bank, expects that Eurozone PMI data releases and US ISM manufacturing will garner maximum investors’ attention in today’s session.

Key Quotes

“The coming week’s ‘hard’ data will fill in more details that will help to shape the UK Q1 GDP estimate, including industrial production and construction output for February on Friday. Before that, we will have the PMI surveys, starting with the manufacturing report today. Last month, the headline manufacturing PMI declined from 55.7 to 54.6, but it remained comparatively stronger than for services, likely reflecting both sterling’s post-referendum depreciation as well as signs of a synchronised upswing in the global manufacturing cycle. For March, the CBI Industrial Trends survey points to an improvement in manufacturing sentiment and we look for a rise in the PMI to 55.4.”

“The equivalent Eurozone manufacturing PMI reports are also due, but they are the final readings and expected to confirm solid activity during the quarter. The March outturn is expected to be unrevised at 56.2, the strongest level since 2011. The Eurozone unemployment rate, meanwhile, could edge lower to 9.5% from 9.6% which would be a near eightyear low. The US ISM manufacturing will draw more attention and we look for a pullback to 57.0 in March from 57.7, which would still signal a strong pace of growth. The ‘hard’ data, on the other hand, have painted a more mixed picture for actual Q1 GDP growth. Nevertheless, we look for a rebound of 1.1% in construction spending in February. Fed speakers today include Dudley, Harker and Lacker.”