Rolling news coverage of markets, economics and business as investors look to key eurozone economic data
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- European Central Bank head calls for ‘new European policy mix’
The Eurozone manufaturing sector continued to shrink in November, according to IHS Markit’s purchasing managers index (PMI).
The flash manufacturing reading came in at a reading of 46.6, below the 50 mark that indicates growth but an improvement compared to October and slightly higher than expected by economists.
Germany’s manufacturing PMI bottoming out. New orders component in particular. Still not great. But possible recovery on the cards. $EUR distracted by Lagarde. But look at peripheral $EUR sensitive FX like $SEK & $ZAR. Even $AUD up a touch. Green shoots? More like fading risks pic.twitter.com/MhhZS8yRGf
Lagarde highlighted public investment in particular (as opposed to spending on day-to-day operations), and repeated Mario Draghi’s calls for closer monetary union.
Economists said Lagarde’s speech, which has now finished, represented a continuation of Draghi’s stances – albeit with a review to come.
Continuity from @Lagarde, with a focus on a better policy/institutions alignment over the medium-term. Strategy review might be formally launched in December.
Meanwhile monetary policy will be driven by the economy, and the ECB should remain on hold based on today’s PMIs. pic.twitter.com/uyOr6SlKmh
Lagarde to continue the #ECB’s push for fiscal policy to step up: “We will continuously monitor the side effects of our policies. Monetary policy could achieve its goal faster and with fewer side effects if other policies were supporting growth alongside it.” pic.twitter.com/mmQ4f40K20