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4 Feb 2015
Key events ahead: Juncker-Tsipras meeting, UK and US PMIs – Danske
FXStreet (Barcelona) - The Danske Bank Team previews the key events for the day, expecting UK PMI to register a slight increase to 56.0 and US ISM non-manufacturing PMI to stay unchanged.
Key Quotes
“Today Greek prime minister Tsipras and EU Commission president Juncker will meet and a political agreement could be reached. The Greek government has revealed a proposal for an agreement, which does not include debt write-off, and the discussion will probably focus on the conditions in the proposal.”
“We expect another increase in euro retail sales in December as they are supported by the sharp decline in the oil price and improved consumer confidence. The increase follows strong gains of 0.6% m/m in both October and November, suggesting decent private consumption in Q4.”
“The first release of the euro periphery service PMIs is expected to confirm that the Spanish economy continues to improve, whereas the lag of reforms in Italy continues to be a headwind."
"In the UK the service PMI is expected to increase slightly to 56.0, pointing towards solid growth in the service sector.”
“In the US ISM non-manufacturing is expected to stay unchanged even though the manufacturing PMI on Monday was weaker than expected. However, our expectation reflects that the service sector is benefiting from the boost to households' spending power from the lower oil price and it is not as sensitive to a stronger USD as the manufacturing sector.”
“Ahead of the US employment report on Friday ADP employment will give some more information about the labour market. Employment growth has been strong over the past four months. However, we have a marginal below-consensus call on non-farm payroll for January.”
Key Quotes
“Today Greek prime minister Tsipras and EU Commission president Juncker will meet and a political agreement could be reached. The Greek government has revealed a proposal for an agreement, which does not include debt write-off, and the discussion will probably focus on the conditions in the proposal.”
“We expect another increase in euro retail sales in December as they are supported by the sharp decline in the oil price and improved consumer confidence. The increase follows strong gains of 0.6% m/m in both October and November, suggesting decent private consumption in Q4.”
“The first release of the euro periphery service PMIs is expected to confirm that the Spanish economy continues to improve, whereas the lag of reforms in Italy continues to be a headwind."
"In the UK the service PMI is expected to increase slightly to 56.0, pointing towards solid growth in the service sector.”
“In the US ISM non-manufacturing is expected to stay unchanged even though the manufacturing PMI on Monday was weaker than expected. However, our expectation reflects that the service sector is benefiting from the boost to households' spending power from the lower oil price and it is not as sensitive to a stronger USD as the manufacturing sector.”
“Ahead of the US employment report on Friday ADP employment will give some more information about the labour market. Employment growth has been strong over the past four months. However, we have a marginal below-consensus call on non-farm payroll for January.”