We’ll start our news today from Japan; as the BOJ will postpone its targeted 2% inflation time frame as it refrains from enlarging its asset purchase program, which will need more time to reach the 2%. Furthermore, the Bank of Japan and its board members refrained today from adding stimulus to the world’s third largest economy amid the recent economic environment, where the bank keep his pledges to double the monetary base by 60-70 trillion yen a year. In China, the Organization for Economic Co-operation and Development said that the Chinese growth is expected to accelerate to 8.2% in 2014, up from the estimated 7.7% this year, where domestic demand will be the main gauge for the accelerated expansion in the world’s second largest economy. Moreover, the organization noted that China’s growth is currently recovering its momentum while inflation remains low, adding that current rebounded demand supported growth. Also in China, HSBC China released its preliminary Manufacturing Purchasing Managers’ Index reading concerning the month of November, where the reading slowed to 50.4, from a previous reading and analysts’ estimates of 50.9. In Europe, The economic clock is expected tick louder on Thursday, with the Euro zone manufacturing and services Purchasing Managers` Indexes data due to be released. The euro-area PMIs are forecasted to show positive feed about the bloc’s manufacturing and services activity in November. Following the surprising interest rate cut by the European Central Bank (ECB) to a record low, eyes will remain the flow of economic data from the 17-nation region, to track the health of the economy, amid expectations the ECB will adopt even further measures to bolster recovery. - France preliminary PMI Manufacturing probably rose to 49.5 vs. 49.1 - France preliminary PMI Services expected at 51.0 vs. 50.9 - Germany advanced PMI Manufacturing forecasted at 52.0 from 51.7 - Germany advanced PMI Services likely rose to 53.0 from 52.9 - Euro zone advanced PMI Manufacturing likely edged up to 51.5 vs. 51.3 - Euro zone advanced PMI Services probably rose to 51.9 vs. 51.6 - Euro zone advanced PMI Composite estimated at 52.0 vs. 51.9 Euro-area national output stagnated through the three months ending in September with France`s recovery fizzling out and growth in Germany slowing, disappointing hopes that a full-fledged recovery was finally taking hold after five years of recession and stagnation. In Germany, growth slowed to 0.3 percent, as domestic consumption picked up and helped compensate for flat level of exports. Growth amounted to an annualized rate of 1.2 percent, slower than in the second quarter, when the German economy grew at an annualized rate of 2.8 percent. The French economy contracted 0.1 percent in the July to September period from 0.5 percent growth recorded in the previous quarter; disappointing hopes for sustained recovery just months after the country broke out of a shallow recession.
Posted on: Thu, 21 Nov 2013 08:25:22 +0000
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