IHS Markit PMI surveys all showed, if not a rebound, then certainly a slowing of the downturn in the Eurozone economy in June, ahead of expectations. In France, one of the worst affected countries, services PMI increased to 50.3 and manufacturing to 52.1, all much better than forecast.
The single currency strengthened by around half a cent against the US dollar.
The picture is still one being less grim than expected rather than rosy, with the ECB predicting a contraction of 13% in the second quarter of 2020 (April to June) and a full recovery only by 2023. In the Eurozone’s largest economy, Germany’s top economic advisers forecast a 6.5% GDP contract in 2020 and full recovery by 2022.
The week ahead has further indications of consumer confidence, most notably the Ifo Business Climate readings for Germany tomorrow and Gfk Consumer Confidence Survey early on Thursday morning.
The accounting and tech scandal developing around the German payments company Wirecard was ramped up yesterday when Wirecard’s CEO was arrested.
