In This Article:
Economic Calendar:
Tuesday, 25th May 2021
German GDP (QoQ) (Q1) Final
German GDP (YoY) (Q1) Final
German Ifo Business Climate Index (May)
Thursday, 27th May 2021
GfK German Consumer Climate (Jun)
Friday, 28th May 2021
French Consumer Spending (MoM) (Apr)
French GDP (QoQ) (Q1) Final
French CPI m/m (May) Prelim
French HICP m/m (May) Prelim
The Majors
It was a relatively bullish end to the week for the European majors on Friday.
The CAC40 and EuroStoxx600 rose by 0.68% and by 0.57% respectively, with the DAX30 ending the day up by 0.44%.
Economic data from the Eurozone and the U.S provided further support to the majors following Thursday’s rebound.
Adding to the upside on the day was further assurances from ECB President Lagarde of no shift to policy near-term. In spite of Lagarde’s assurances, the upside at the end of the week was modest. FOMC member talk of a review of the asset purchasing program, in spite of Powell’s assurances of no near-term tapering, left the markets on a cautious footing.
The Stats
Economic data from the Eurozone was on the busier side on Friday with prelim private sector PMIs for May in focus.
France
According to prelim figures, the manufacturing PMI rose from 58.9 to 59.2, with the services PMI rising from 50.3 to 56.6.
Economists had forecast a manufacturing PMI of 58.5 and a services PMI of 53.0.
Germany
The manufacturing PMI fell from 66.2 to 64.0 while the services PMI increased from 49.9 to 52.8.
Economists had forecast a manufacturing PMI of 65.9 and a services PMI of 52.0.
The Eurozone
In May, the manufacturing PMI slipped from 62.9 to 62.8, while the services PMI increased from 50.5 to a 35-month high 55.1. Economists had forecast PMIs of 62.5 and 52.3 respectively.
Supported by the pickup in service sector activity, the composite PMI increased from 53.8 to a 39-month high 56.9. Economists had forecast an increase to 55.1.
According to the Markit survey,
-
The rate of expansion across the private sector hit the highest for over 3-years.
-
New order inflows surged at a pace not seen for almost 15-years.
-
Business optimism continued to hit new highs.
-
Price gauges rose further, however, as demand continued to outstrip supply for many goods and services.
From the U.S
It was a relatively busy day on the economic calendar on Friday, with private sector PMIs for May also in focus.
The services PMI jumped from 64.7 to 70.1, with the manufacturing PMI rising from 60.5 to 61.5. Economists had forecast PMIs of 64.5 and 60.2 respectively.
The marked pickup in private sector activity mid-way through the 2nd quarter delivered support to the majors.