Both the manufacturing and industrial production figures vastly outperformed analysts’ estimates this Friday. The former actually rose to 2.1%, from an upwards revised 1.4% the month previous, instead of falling to 0.3% as forecast; the latter, meanwhile, may have dipped from 2.0% to 1.1% month-on-month, but that did mean it avoided the expected foray into negative territory. As has been the case for the last few weeks the positive data was absorbed by sterling – though it seemed to have caused more of a drag on the FTSE than it did to boost the pound, the currency sitting flat against the dollar and rising 0.1% against the euro.
Like in the UK the Eurozone saw its early growth peter out as the morning went on. The DAX is now up just 0.1%, while the CAC slipped into the red by the same amount. Investors may have been spooked by the fact that Greek finance minister Euclid Tsakalotos has flown out to Brussels for emergency talks between the debt-laden country and its creditors.
Looking ahead to the US open and the Dow Jones is set to build on yesterday’s Trump tax promise-inspired all-time highs. The futures have the Dow jumping around 30 points after the bell, keeping it above the 20200 mark. The index’s resolve will be tested, however, by the latest import prices and preliminary UoM consumer sentiment readings; the former is expected to remain unchanged at 0.4%, but with the latter slipping from 98.5 to 97.9 month-on-month.