GERMAN DATA: IFO Employment Barometer Deteriorates In August
Aug-27 07:36
The IFO employment barometer decreased marginally to 93.8 points in August, from 94.0 in July. "The labour market is still stuck in crisis [...] The stagnating economy is making companies act cautiously when it comes to personnel planning", IFO comments.
- In industry the indicator rose to its highest since August 2024 (-17.1 vs -18.1 July). "although the barometer rose again, the signs are nevertheless still pointing to job cuts, albeit to a lesser extent than in the previous month. In all key industrial sectors, there were more layoffs than new hires."
- In services, the indicator has slipped into negative territory (-1.4 vs 0.5 July), having hovered around neutral for broadly a year now. "While temporary employment agencies are struggling with a slump in demand, the tourism sector is busy hiring."
- Note that today's release of German consumer confidence has mentioned expectations for potential job cuts likely weighed on the print.
- 'Hard' German labour market data is scheduled for this Friday, with the (seasonally-adjusted) unemployment rate expected to remain stable at 6.3%.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CROSS ASSET: A quick turnaround in Equities
Jul-28 07:35
- A quick turnaround for the Estoxx Futures (VGU5), back at session lows, the Opening gap would be down to 5390.00, but not a good technical study to use for these type of contracts.
- The Price action has dragged the Cash SX5E under 5400.00, but the pace is more limited for now.
- The EUR is coming under some small pressure, testing the intraday low against the USD, CAD, TRY, CHF, JPY and GBP.
- Some of the Risk Off in the past few minutes is dragging the AUD at session low, but the Dollar bid has also been a driver so far Today.
EURIBOR: Some big Volumes in the back Calendar Spreads
Jul-28 07:25
- We noted some notable early flow in the Blue ERH9/M9 calendar spread, being sold down to 4.5 from a 5.5 record high printed last Week.
- There's now a whopping 34k ERM7/U7 spread seller, which explains the massive volumes in those expiries.
EGBS: Peripherals Outperform As Equities Rally
Jul-28 07:22
German yields are now 1.5-2.5bp lower across the curve, with the belly & intermediates outperforming.
- EGB spreads to Bunds are little changed to 1bp tighter, with the periphery outperforming as equities firm in the wake of the U.S.-EU trade deal.
- Ongoing adjustments to that deal and focus on the Sino-U.S. meeting in Stockholm are noted.
