ITALY DATA: New Business Inflows Rise To 1.5 Year High In October Services PMI
Nov-05 08:51
Italy (as Spain earlier) came in stronger than expected at 54.0 (53.0 cons; 52.5 prior). Growth in new work was a key driver, supported by a fresh rise in exports. Key highlights below:
- "Both output and new business increased at sharp and accelerated paces. Notably, October saw an end to the trend of decline in exports, with the volume new business from abroad up slightly on the month."
- On the higher exports: "Some panellists noted higher sales from European customers, but there were also reports of persistent international uncertainty."
- "Services firms retained a positive outlook when asked about their expectations for activity for the year ahead. Panellists are forecasting an improvement in market conditions and expect new customer wins and increased service offerings to be supportive of growth. The level of confidence ticked down from September and remained subdued by historical standards, however"
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EURIBOR OPTIONS: 2yr vs 3yr Midcurve
Oct-06 08:45
2RZ5 97.75/98.00cs vs 3RZ5 97.62/97.87cs, bought the 2yr for 2.75 in 2.5k.
GILTS: Off Lows
Oct-06 08:44
Some stabilisation after the early sell off means that recent/cycle highs across benchmark yields remain untested/some distance away, depending on the maturity.
- Goldman Sachs continue to expect “lower Gilt yields in coming quarters and forecast 10-Year yields at 4.40% by year-end, with three requirements for relief”…”additional evidence that disinflation is progressing is the crucial element”…”a credible government response to the rising fiscal gap (adherence to fiscal rules, avoidance of inflationary tax rises, and a contractionary budget paving the way for BoE easing)”…”some stabilisation in the global duration backdrop”.
- Note that Goldman continues to recommend 2s5s steepeners.
EGB OPTIONS: Schatz Put Spread
Oct-06 08:33
DUX5 107.10/107.00ps, sold at 6.25 in 3k (ref 107.03).
