Daily Market Color 08/01/2013

Daily Market Color

08/01/2013

Economic Reports & Headlines

A few PMI reports were released today in the Euro Area and the US for July. Below are the actual results versus consensus:

France: 49.7 Vs 49.8

Germany: 50.7 Vs 50.3

Eurozone: 50.3 Vs 50.1

UK: 54.6 Vs 52.8

US: 53.7 Vs 53.1

The Bank of England issued their monetary policy announcement which was in line with consensus in light of the series of positive economic reports. The bank left their key rates and asset purchase program unchanged.

The European Central bank left their key rates unchanged.

On the domestic front, jobless claims in the US came in way better than expected, 326k Vs 345k.

The institute of supply management came in stronger than expected for July, 55.4 Vs 53.1.

Construction spending in June for the US surprised to the downside on a month over month basis, -60bps Vs 40bps. Despite the downbeat report, the previous reading was revised higher.

Motor vehicle sales for July in the US came in lower than expected, 12.2m Vs 12.4m.

Second quarter producer prices in the US came in lower than expected on a quarterly basis, 10bps Vs 50bps.