Italian services companies recorded the fastest rise in business activity for six months in August. The upturn was fuelled by stronger growth in new order books, which concurrently led to the first increase in business outstanding for a year. Meanwhile, after hitting a near nine-year high in July, job creation eased back across the services economy. The headline Markit Business Activity Index registered 52.3 in August, up from July’s 52.0. That signalled a third straight monthly increase in business activity, with the rate of growth the strongest since February, albeit moderate.
Focus of the Thursday's session was on ECB interest rate decision and the following statement. At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases. Regarding non-standard monetary policy measures, the Governing Council confirms that the monthly asset purchases of €80 billion are intended to run until the end of March 2017, or beyond, if necessary, and in any case until it sees a sustained adjustment in the path of inflation consistent with its inflation aim.
This week markets will be looking at:
German ZEW Economic Sentiment/ZEW Economic Sentiment (Tuesday 11:00)
Final CPI (Thursday 11:00)
