Ongoing inflation concerns around the world direct expectations regarding the steps central banks will take in monetary policies.
In this regard, the Producer Price Index (PPI) in the Eurozone decreased by 0.3 percent in June compared to the previous month, thus softening investors’ future inflation concerns.
Following this data, the probability of the European Central Bank (ECB) increasing policy interest rates next month decreased from 85 percent to 70 percent in the pricing in money markets.
According to the data announced today in the region, new orders from the manufacturing industry in Germany were above expectations with 3.1 percent on a monthly basis. The data exceeded estimates with 6.5 percent on an annual basis.
Additionally, retail sales data will be closely monitored to provide signals about whether consumer demand continues to support economic activity. On the other hand, according to the data announced yesterday, the composite Purchasing Managers Index (PMI) in the Eurozone in July reached the highest level of the last 8 months with 52 points.
Meanwhile, the European Union (EU) announced that 1.4 billion euros of revenue from the frozen assets of the Central Bank of Russia will be used to support Ukraine.
With these developments, as of 10.30 in the European markets, the Stoxx Europe 600 indicator index is at 659 points, with a 0.4 percent increase, and the FTSE 100 index in the UK is at 10,922 points, with a 0.3 percent increase compared to the previous closing.
The DAX 40 index in Germany is at 26,196 points with a 0.2 percent premium compared to the previous closing, the FTSE MIB 30 index in Italy is at 53,795 points with a 0.6 percent increase, the CAC 40 index in France is at 8,733 points with a 0.7 percent premium, and the IBEX 35 index in Spain is at 20,250 points with a 1 percent gain in value.
Analysts stated that June retail sales data in the Eurozone will be followed for the rest of the day.
