Archives of “October 2020” month

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Eurozone August industrial production +0.7% vs +0.8% m/m expected

  
Analysis, Economy

Latest data released by Eurostat – 14 October 2020

  • Prior +4.1%; revised to +5.0%
  • Industrial production -7.2% vs -7.0% y/y expected
  • Prior -7.7%; revised to -7.1%

Euro area factory output continues to highlight an improvement in Q3 but the recovery pace is losing some steam with the August bounce, though expected, not all too robust.

That said, manufacturing PMI data for September provided some indication that the industrial sector is still holding up towards the end of Q3 but amid ongoing virus concerns, it remains to be seen how things will progress as we move towards the year-end.

European equities see little change to kick start the day

  
Analysis, Global Indices

Tepid tones observed in Europe to start the session

  • Eurostoxx +0.1%
  • Germany DAX -0.1%
  • France CAC 40 +0.1%
  • UK FTSE +0.5%
  • Spain IBEX +0.1%
Elsewhere, US futures are still keeping a little more optimistic with S&P 500 futures up ~0.4% while Nasdaq futures are up ~0.6%. However, once again the bond market and currencies aren’t really singing to that tune.
10-year Treasury yields are down 0.5 bps to 0.722% while in the currencies space, not much is happening besides an extended fall in the pound below 1.2900.
This now puts the focus on support around 1.2875-80 with the 50.0 retracement level of the recent swing move higher @ 1.2879 being tested as well.
In turn, that is propping up UK stocks as we get things going on the session.

Japan August final industrial production +1.0% vs +1.7% m/m prelim

  
Analysis, Economy

Latest data released by METI – 14 October 2020

  • Industrial production -13.8% vs -13.3% y/y prelim
Slight delay in the release by the source. The preliminary release can be found here.
A slightly lower revision sees Japanese factory output improve at a slower pace than initially estimated in August. The recovery in Japan is still very much gradual but at least it is still keeping pace somewhat in Q3 so that should offer some comfort to the BOJ.
But overall conditions are still seen far off compared to pre-virus levels, so there’s that.
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