- Inflation data for the eurozone region showed that consumer prices rose by 3% year-on-year for August. This was more than expected and above the ECB target of 2% putting pressure on the central bank to address inflation concerns.
- UK Composite PMI was revised down to 54.8 in August 2021, below estimates and indicating a much slower speed of recovery across the private sector economy. Both services and manufacturing sectors grew at the weakest rates for six months.
- Eurozone Composite PMI for August came it at 59.0 and comment from Joe Hayes, Senior Economist at IHS Markit, read “It was another solid result for euro area businesses in August, according to the PMI numbers, which still point to rapid rates of expansion in output and demand”.
- Our Breadth indicator stayed positive but our Momentum Indicator ticked lower again.
- The big event of the week was the US nonfarm payrolls data for August, released on Friday, which provided a huge miss. Market was expecting 750,000 but the number came in at 235,000. The poor data may actually benefit stocks as it could mean the Fed will not bring forward the time it begins to taper stimulus and any indication of that will steady investors nerves.
- Our Breadth Indicator stayed negative but our Momentum Indicator ticked higher for the first time in eight weeks.
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