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Wednesday, August 7, 2013

Daily Market Color 08/05/2013

Daily Market Color
08/05/2013

Economic Reports & Headlines
Three reports were released over the weekend that merit extra attention. Japan’s service PMI came in lower than expected for July, 50.6 Vs 52.1.

China’s service PMI expanded in line with consensus for July, 51.3.

Retail sales in Australia were flat for June on a monthly basis, 0.0% Vs 0.4%.

Today is service PMI day for July. We got a read on the service sector in a few European countries and the US. Below are the actual figures versus Econoday’s consensus. Any reading above 50 indicates an expansion while readings below 50 indicate a contraction.

France: 48.6 Vs 48.3
Germany: 51.3 Vs 52.5
UK: 60.2 Vs 57.1
Eurozone: 49.8 Vs 49.6  
US: 56.0 Vs 53.0

The UK and the US are showing robust activity in the service sector.

Retails sales in the Eurozone was in line with expectations for June by declining 50bps.

On the Australian front, the country’s house price index surpassed analysts’ expectations in the second quarter on a quarterly basis, 2.4% Vs 1.0%.


Australia’s trade surplus for June lower than expected, A$602bn Vs A$800bn.

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