The Purchasing Managers Index (PMI) of services sector in the UK indicates of a return to growth in August, after July data indicated a contraction in activity due to the results of the referendum of the UK for an exit from the EU.
The PMI services sector came in August to 52.9 points compared to 47.4 points in July.
The PMI in the Euro zone pointed on a low of 19 months, mainly due to the decrease in activity in Germany.
The consolidated index for the services sector and the manufacturing sector came in August to 52.9 points.
The European stock markets trading is conducted with slight increases towards the publication of macroeconomic data on the continent that could indicate an expansion of the service sector and production on the continent.
The PMI published in the UK last month pointed to a weakening of economic activity in the UK after a referendum voted to support the exit from the EU.
There will be no trading today on Wall Street in honor of “Labor Day”.
The trading in the US will resume tomorrow.
The Asian markets reacting to the disappointing US employment report with a rises.
Tokyo rises by 1%,Hong Kong rising by 1.7%,Shanghai climbed 0.2%.
The foreign exchange market, the US dollar weakened by 0.3% against the yen and is trading at about 103.62 yen to the dollar.
For the Japanese exporters it is bad news, because they prefer a weak yen to help them be more competitive in export markets.
The market is reacting to the US jobs report which provided a weak result of the addition of 151 thousand jobs daughter only.
The futures contracts on indices on Wall Street are traded with a mixed trend with a tendency to decline.
US August non-farm payrolls +151K vs +180K expected.
The crude oil WTI rising by 0.3% to 43.25 dollars per barrel.
Russian President Vladimir Putin said today that Russia is interested in an agreement with the OPEC countries to freeze production scale of the oil.
The European stock markets trade is conducted with rising prices ahead of the publication of the US employment report (13:30 UK time), which is expected to vote on the continued recovery of the US labor market and a further decline in unemployment, which will strengthen the chances of another interest rate rise in the US this year.
A surprising contraction in the US manufacturing sector
The manufacturing sector activity contracted unexpectedly in August due to the strengthening of the US dollar, slower growth of the global economy and uncertainty about the US economic outlook.
The manufacturing sector activity index in the US fell in August to 49.4 points – the lowest level since January, compared with a level of 52.6 points in July.
The economists had forecast only a slight decline in the index to 52 points.
Another data showed that the number of reported initial jobless claims stayed near a record low of more than four decades.
365 Stock market news 