UK services PMI and Euro area retail sales in focus – Danske Bank

Research Team at Danske Bank, suggests that the Euro area retail sales and UK services PMI are going to be the market movers for the day.

Key Quotes

“In the euro area, August retail sales are due to be released at 11:00 CET. The retail sales figures have been solid on a yearly basis, however, this needs to be seen in the light of the low oil price. Looking forward, we expect gradually decreasing retail figures for the euro area as the continual improvement in the labour market has plateaued and the higher inflation will weaken the real wage. This is also reflected in the latest retail figure for Germany.

In the UK, PMI services is due out at 10:30 CET. Given that PMI services is back to the pre-vote level, we do not think it can go much higher and expect it to stay around the current level (52.9), suggesting that the service sector continues to grow at a decent pace even after the UK's vote to leave the EU.”