Purchasing Managers’ Index (PMI) for the EU and UK services sectors due for release today could be underwhelming.
Measuring the confidence in businesses, PMI is expected to slip further, with the EU’s reading forecast at 50.8 and at 51 for the UK. These predictions show confidence is dropping as fears of no-deal Brexit and continued trade tensions are taking their toll.
PMI slipped substantially during the second half of 2018 to just above contraction territory, having come in at 51.2 in January for both the EU and the UK. The read above 50 shows expansion.
The services sector makes up 73 per cent and 76 per cent of the EU and UK economies, respectively. Investors looking for a boost of confidence across the continent will watch today’s data releases very closely.
Across the Atlantic, US President Donald Trump will tonight make his State of the Union address, which was delayed from 29 January due to the government shutdown. Trump will use it as an opportunity to champion his achievements over the past 12 months, as well as to set the direction for the next 12 months. Meanwhile, the deadline for funding for his wall on the Mexican border is fast approaching. Trump may use the address to declare a national emergency to start work on his wall immediately.
US economic growth remains solid
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