Markets looking for largely unchanged PMIs for both France and Germany - TDS

Research Team at TDS, suggests that markets are looking for largely unchanged PMIs for both France and Germany for August, but we see downside risks for France and upside risks for Germany.

Key Quotes

“The last German manufacturing PMI report noted strength in new orders, an acceleration of output to start Q3, and a steep reduction in inventories, suggesting that they may need to be rebuilt. So we look for the German PMI to edge a bit higher, from 53.8 to 54.2.

For France, the country has reportedly suffered from a steep drop in tourism following the attacks in Nice, which may hit French service industries during the peak may summer holiday period. We look for the services PMI to fall from 50.5 to 50.0

UK: The CBI’s volume of orders is released for August, and markets expect a deterioration to -10.”