Yahoo Finance

Economic Calendar:

Tuesday, 25^th August

German GDP (YoY) (Q2) Final

German GDP (QoQ) (Q2) Final

German Ifo Business Climate Index (Aug)

Friday, 28^th August

GfK German Consumer Climate (Sep)

French Consumer Spending (MoM) (Jul)

French GDP (QoQ) (Q2) Final

The Majors

It was a bearish end to the week for the European majors on Friday. The DAX30 fell by 0.51%, with the CAC40 and EuroStoxx600 seeing losses of 0.30% and 0.15% respectively.

Economic data from the Eurozone weighed on the European majors on the day. The markets hope of a v-shaped economic recovery were dashed on Friday, as the Eurozone’s PMIs fell to 2-month lows.

The downside for the European majors was limited, however, with positive PMIs from the U.S providing support. Economic data from Thursday and the FOMC meeting minutes had weighed on the majors on Thursday.

Adding to the market angst on the day was uncertainty over what lies ahead for China, the U.S, and the trade agreement.

Tensions have flared as Trump targets China’s tech stocks. At the end of the week, the administration held back from affirming Beijing’s announcement that trade talks were set to resume.

The Stats

It was a busy day on the Eurozone economic calendar. Key stats included August’s prelim private sector PMIs from France, Germany, and the Eurozone.

In August, the French manufacturing PMI slid from 52.4 to 49.0, with the services PMI falling from 57.3 to 51.9. Economists had forecast PMIs of 53.7 and 56.2 respectively.

From Germany, the manufacturing PMI rose from 51.0 to 53.0, while the services PMI slid from 55.6 to 50.8. Economists had forecast PMIs of 52.5 and 55.1 respectively.

For the Eurozone, the manufacturing PMI fell from 51.8 to 51.7, with the services PMI declining from 54.7 to 50.1. Economists had forecast PMIs of 52.9 and 54.5 respectively.

The Eurozone’s composite PMI fell from 54.9 to a 2-month low 51.6. Economists had forecast for the PMI to hold steady at 54.9.

According to the prelim Markit Survey,

• Business activity and new orders rose modestly, and at slower rates than in July.

• While new orders increased for a 2^nd consecutive month, new export orders fell. Travel restrictions due to a jump in new COVID-19 cases weighed on new business from abroad for service providers.

• Companies across the Eurozone continued to reduce workforce numbers.

• While the focus has been on service sector activity, the one highlight was a sharp rise in manufacturing production. The Manufacturing PMI Output Index rose to a 28-month high in August.

• At the composite level, weakness in the service sector weighed in August.