On August 18, the annualized CPI showed an increase of 0.1% and beat the forecasts. The clothing and footwear sector drove the increase in inflation.
It looks like it will take more than just a positive inflation reading for investors in the United Kingdom to have positive sentiments towards the region’s growth.
The euro-dollar pair posted a weekly gain of 1.35%, even after a slight fall of 0.35% on Friday, August 14, 2015.
July’s inflation report failed to generate positive sentiment among investors in French equity. The EU harmonized inflation rate in France came in at 0.20% in July.
Industrial production in the Eurozone isn’t picking up at the desired pace, despite the depreciating currency that should help boost exports.
The ECB’s (European Central Bank) monetary stimulus package seems to be working well for most Eurozone economies, especially Italy.
All major US exchange-traded funds tracking Eurozone equity fell on August 11 as the ZEW Indicator of Economic Sentiment came out for August.
The iShares MSCI France (EWQ) was up 1.11% at the close of trade on August 10. Industrial production data from France showed weakening industrial activity in June 2015.
Germany’s industrial production fell in June over May, according to a Deutsche Bundesbank report dated August 7. EWG fell 0.31% at the close of trade.
Factory orders in Germany rose by 2% in June, according to a Deutsche Bundesbank report dated August 6. So far, EWG has yielded 5.25% this year.
Poland (EPOL) had some good news for investors in the country and for investors in Germany (EWG). The Polish economy serves as a manufacturing hub for Germany.
The Markit/BME Germany Manufacturing PMI report that came on August 3 indicated that “German manufacturing continues to grow at modest pace in July.”
Markit Economics’ Final Eurozone PMI Composite Output Index report for July exceeded expectations despite the Greek crisis.
According to the July 31 Eurostat release, the unemployment rate in the Eurozone was at 11.1% in June 2015. It held steady from May’s 11.1%.
European ADRs (American depository receipts) such as Nokia (NOK), Banco Santander (SAN), and Royal Dutch Shell (RDSA) rose on Friday’s close.
UK GDP improved 2.6% at the end of the second quarter. According to economists in a Bloomberg survey, UK GDP is expected to rise by 2.5% in 2015 and 2.3% in 2016.
EWG was down 0.57%, as Germany’s inflation and unemployment rate held steady despite the ECB’s (European Central Bank) monetary easing measures.
Economic confidence in the Eurozone got some relief as the Greek crisis settled with the troika granting further aid to Greece.
The Markit Economics report for Germany (EWG) indicated a slowdown in business activity at the onset of the third quarter.
Investors in the Eurozone have been expecting positive economic news from the area. The ECB’s bond buying program has been in effect since March.