The Eurozone Markit PMI Composite for July was recently released, which stood at 54.9 after being at 54.8 in June, signaling an expansion, and slightly above the analysts' expectations who foresaw that the composite PMI would remain unchanged. On the other hand, July's Markit Services PMI signaled a slower expansion, at 54.7 after being at 55.1 in the previous month, and below the analysts' expectations who foresaw that it would remain unchanged.
Germany's Markit PMI Composite stood at 55.3 in July, falling from June's figure which stood at 55.5, signaling a slower improvement. The Markit Services PMI stood at 55.6 in July, below June's figure which was at 56.7, signaling a slower expansion.
“After a record 10.1% collapse in economic output in the second quarter, GDP growth of 6% is expected in the third quarter,” commented the Markit economist Phil Smith, adding that we can't expect to return to pre-coronavirus crisis levels until 2022.
By 8:24 GMT the Euro gained 0.09 percent against the Greenback, hitting the 1.1811 level. Conversely, it gained 0.11 percent against the Pound Sterling, hitting the 0.9038 level.
Oil Markets and US Stock Gain Despite the Advance of the Coronavirus Crisis
Yesterday, the oil markets advanced after the markets learned about a significant draw in the US crude oil inventories.
The American Petroleum Institute claimed yesterday that the US crude oil inventories dropped by 8.587 million barrels for the last week of July, exceeding the analysts' expectations who foresaw a draw of 3.267 million barrels. In the previous week, the API reported that crude oil inventories went down by 6.829 million, which was also unexpected since analysts expected an increase in the crude oil inventories.
The West Texas Intermediate crude oil futures posted gains for the third consecutive day, advancing 1.32 percent during the session, and closing at the 41.55 level. Conversely, the Brent oil futures also gained for the third consecutive session, going up by 0.41 percent, and closing at the 44.33 level.
The Covid-19 pandemic continues advancing around the world, infecting about 18,708,865 individuals around the world and killing 704,438. The United States leads in the number of infections, with 4,918,420 confirmed infections as well as a death toll of 160,290. Another heavily affected countries are Brazil, India, and Russia.
US stocks gained during the session, as the optimism for additional stimulus, spread around in the markets. The US lawmakers are set to leave for a summer break on Friday, so both democrats and republicans should reach an agreement before the recess starts.
The S&P 500 closed on the positive territory, gaining 0.36 percent during the session, closing at the 3,306.51 level, while the Dow Jones industrial average advanced 0.62 percent, closing the session at the 26,828.47 level. Conversely, the Nasdaq 100 increased by 0.38 percent, closing the session at the 11,096.54 level.
On the other hand, the European stock markets were mixed during yesterday's session. The DAX dropped by 0.36 percent, closing the session at the 12,600.87 level, while the FTSE 100 gained 0.05 percent during the session, closing at the 6,036.00 level. Conversely, the Euro Stoxx 50 gained 0.19 percent during the session, closing at the 3,254.29 level.