Boeing and Caterpillar disappoint earnings
EU Manufacturing PMI dips to multi-year lows
US Manufacturing PMI slumps to 10-year lows
Economic data continue to deteriorate in Europe and in the US. The latest round of data highlight a very precarious status of the manufacturing sector in the old and new continent. The Germany Manufacturing PMI in June plunges to 43.1 vs 45 expected boosting expectation for a rate cut by the ECB by the end of September. On the US front, the US Manufacturing PMI stagnates above the 50 contrary level touching a fresh 10-years low. Looking at the latest earnings, Caterpillar and Boeing were due today, disappointing analyst expectations, with both companies lowering projections for 2019.
Disappointing earnings and further signs of a recession in the manufacturing sector limited the upside momentum in stocks. However, most of the US Indices remain close to record highs, with SP500 trading firm above the 3000 mark. European Indices traded also positive, amid higher expectations of an ECB rate cut in September.
On the FX front, the DXY traded softer today ahead of tomorrow ECB key meeting. G10 USD counterparts traded mainly flat, with the exception of GBP, as Boris Johnson promises Brexit by the end of October.
Crude traded choppy despite big draw-down in the DOE and API inventories along with a massive reduction in US weekly production crashing down 700k last week, largely due to storm Barry. Gold traded range-bound after a mixed session for the Dollar and US Equities.
Global Yields traded flat ahead of tomorrow ECB meeting.
________________ EU Close
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