European Economic Indicators Start the Week on a Somber Note

As we embark on a fresh week of trading, European economic indicators set a somewhat gloomy tone. The first pieces of significant data rolled in from France and Germany, two of the continent’s leading economies. Unfortunately, both nations’ manufacturing and services PMIs underwhelmed, falling below market expectations. Particularly alarming was Germany’s manufacturing PMI, which registered at a deeply concerning 38.8. Given Germany’s role as the manufacturing powerhouse of Europe, such a dip in its PMI is not a mere statistical blip but carries profound implications for the region.

The data stream for Monday doesn’t end there, though. The financial markets are eagerly awaiting the manufacturing and services PMIs from the broader Eurozone, the UK, and the US. While Mondays are usually quieter on the macro calendar front, this one proves to be an exception, holding investors and traders on their toes.

Turning our gaze to the currency market, two particular currencies seem to be enjoying a good start: the Japanese Yen and the American Dollar. The greenback, in particular, continues its upward stride initiated last week. Whether it’s a haven demand due to the disappointing European numbers or another underlying cause, the momentum for these currencies is unmistakable.

On the stock market front, indices have embarked on a controlled descent. It’s a slight bearish correction, but for now, it seems to be in check, indicating that the broader bullish sentiment hasn’t evaporated.

Commodities, after concluding the past week on a downtrend, offer a mixed picture. Both gold and silver faced declines as the week wrapped up. Nevertheless, the overarching sentiment for these precious metals remains bullish in the medium term. A particularly intriguing situation is unfolding in the silver market. The metal is currently flirting with the $24.5 per ounce support level, presenting potential buy opportunities for traders. However, a breach below this threshold could swiftly turn the tide in favor of the bears.

Lastly, oil paints a similar story. The black gold kicked off the week with a decline, but when viewed from a broader perspective, the medium-term trajectory is still optimistic.

Source: https://www.axiory.com/analytics/market-news/european-economic-indicators-start-the-week-on-a-s