Eurozone PPI came in better than terrible today. On balance, this is bullish for European Equities (we like Germany the most).
Eurozone PPI figures for September were released this morning, coming in slightly better than expected as dropping commodities prices provide relief for EU purchasing managers. Arriving on the heels of last Friday’s October consumer inflation numbers, which also came in lower, the latest PPI appears to clear the way clear for the ECB rate cut later this week which the market is already factoring in…
With factory gate prices declining alongside the Euro, European industry now has a decent chance to compete for regional demand, particularly in the low labor cost Eastern European and Turkish markets.
Andrew barber & Keith McCullough
Research Edge LLC