GLOBAL & REGIONAL DAILY
August 23, 2019
Ahead of Fed Chair Jerome Powell’s speech today at 3pm GMT at Jackson Hole in Wyoming, markets retain a waiting stance; in Wall Street, the S&P and NASDAQ closed in marginally negative territory last night, Asian bourses traded in the black overnight while European stock markets have opened on a mildly positive tone (at the time of writing STOXX600 +0.5%). In FX markets, the British pound appears to be holding firm at 1.2206 against the US dollar at the time of writing, despite the fact that yester-day’s meeting between UK’s PM Boris Johnson and France’s President Emmanuel Macron shed no light in the lingering Brexit saga. On the data front, yesterday’s PMI data came in better for Europe than the US, exceeding expectations while looking at the calendar, setting aside Chair Powell’s speech, focus will turn to the G7 summit, taking place in the weekend in Biarritz.
The turnover index in industry increased on an annual basis by 1.6% in 2019Q2 from a decrease of -0.6% in 2019Q1. In terms of the main industrial groupings, the turnover indices in intermediated goods, capital goods and non-durable consumer goods, contributed positively, with an annual increase of 4.0%, 6.1% and 4.8% respectively. On the contrary, the turnover indices in energy and durable consumer goods contributed negatively with an annual drop of -4.2% and -2.9% respectively.
According to a Fitch Ratings Agency report released a few days ago, the euro adoption in CEE countries would be positive for their sovereign creditworthiness. Since Eurozone membership has various implica-tions in Fitch’s Sovereign Rating Model (SRM), a possible access to the Eurozone’s reserve currency area and a sequent reduction of the share of public sector debt denominated in foreign currency (FC) would have a direct positive impact on the output of the model. Therefore, all else being equal, Fitch could likely upgrade a sovereign’s Long-Term FC Issuer Default Ratings (IDRs) even by two notches from the country’s admission to the Exchange Rate Mechanism (ERM II) date until finally joining the euro.
Viewers can log herebelow and read the full report:
Find out more about our Economic Research and search for reports that may interest you.