Daily Market Color 07/31/2013

Daily Market Color

07/31/2013

Economic Reports & Headlines

Germany started the day off with a read on the country’s retail sales for June. The report was a big upset on a monthly basis by coming in lower than consensus, -1.5% Vs 0.4%.

France’s equivalent of the household spending report, the Consumption of Manufactured Goods, was released for June. The report came in worst than expected on a monthly basis, -40bps Vs -30bps.

Producer prices in June for France came in better than expected on a monthly basis; however, prices still declined for the month, -30bps Vs -120bps.

Germany’s unemployment report for July was in line with consensus, 6.8%.

Italy’s consumer prices for July were worse than expected. On a month over month basis prices declined -1.8% versus consensus of a 0.3% increase.            

Eurozone’s flash harmonized index of consumer prices for July came in line with consensus on a monthly basis, 1.6%.

The Euro area unemployment report for June came in better than expected, 12.1% Vs 12.2%.

On the domestic front, the ADP employment report for July came in below consensus, 179k Vs 200k.

Second quarter GDP was better than expected for the US on a quarter over quarter basis, 1.7% Vs 1.1%.

The institute for supply management released their Chicago PMI report for July which showed an expansion that was lower than expected, 52.3 Vs 54.0.

The Federal Open Market Committee concluded their two day policy meeting today. The bank’s key rates and their asset purchase program were left unchanged.

China’s CFLP manufacturing PMI in July unexpectedly expanded, 50.3 Vs 49.8.

HSBC’s manufacturing PMI for China contracted in July. The contraction was in line with consensus, 47.7.