Weekly Commentary - Focus on Euro-zone
European flash economic data quietly catch the world’s attention, while investors worry Fed’s monetary policy. According to Alroy Commentary – Europe place a role to boost global economy, we argued the Continent will place role in boosting global economy as its stabilizing improvement. Flash economic data not only shows an evident, but the growth may be faster than previous expectation.
The flash euro-zone composite purchasing managers' index (PMI) rose to 51.7 in August, which is a 26-month high. The index keeps moving further above the 50 marks, meaning euro area is heading into recovery. Moreover, the improvement included not only mass countries, such as Germany and French, but also some periphery countries, such as Spain and Italy. In addition to factory output expansion, euro-area countries also record strong export growth. Now investors are waiting two indicators to understand Euro-area recovery more. They are euro-area unemployment rate and inflation data, which both are released on 30 Aug.
Positive data in euro-zone shows a good sign for European market. By comparing to U.S. recovery, the Continent grows slow but stably. The Continent may take a long time to completely recovery. But in short period, its assets may be boosted rapidly by investors hope. We will closely monitor the path of the European economy growth.
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