Market movers today
• German factory orders are expected to increase after two months of decline. Nevertheless, the figure could turn out to be on the weak side of expectations as manufacturing PMI declined in June. Factory orders are suggested to be stronger in the beginning of Q3 as the manufacturing PMI rose above 50 in July.
• UK industrial and manufacturing production for June should increase and show that the improvements in soft data are also reflected in hard data. PMIs in the UK have improved recently and indicate that the recovery is gaining pace.
• We expect preliminary GDP for Italy to show that the economy contracted 0.3% q/q in Q2. Soft indicators suggest that the recession may soon come to an end. Related to that, the current political uncertainty does not seem to have a significant impact on growth.
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Danske Bank