Private sector business conditions in Hong Kong continued to worsen in August, and at a faster rate, the latest survey from IHS Markit revealed on Thursday with a PMI score of 44.0.
That's down from 44.5 in July and it moves farther beneath the boom-or-bust line of 50 that separates expansion from contraction.
Individually, output and new orders fell as faster rates, while supply chains remained under pressure. Business expectations remained negative.
Further tightening of virus-fighting measures, including new limits on the size of public gatherings, dealt another blow to the private sector, with retail, entertainment and food establishments hit particularly hard.
EUROPEAN ECONOMICS PREVIEW: GERMANY INDUSTRIAL OUTPUT DATA DUE
Industrial production from Germany is due on Monday, headlining a light day for the European economic news.
At 2.00 am ET, Destatis is slated to issue Germany's industrial output data for July. Economists forecast production to grow 4.7 percent on month, slower than the 8.9 percent increase in June.
In the meantime, industrial output from Norway and foreign trade figures from Finland are due.
At 2.45 am ET, France current account data for July is due.
At 3.00 am ET, the Czech Statistical Office is scheduled to publish industrial production and foreign trade figures for July. Industrial output is expected to fall 7.2 percent on year, smaller than the 11.9 percent decrease in June.
Half an hour later, the UK Halifax house price data is due.
At 4.30 am ET, Eurozone Sentix investor confidence survey data is due. The investor sentiment index is seen at -10.5 in September versus -13.4 in August.
EUROPEAN ECONOMICS PREVIEW: GERMANY FOREIGN TRADE DATA DUE
Foreign trade data from Germany and revised GDP data from euro area are due on Tuesday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is slated to issue Germany's foreign trade data for July. Exports are forecast to grow 5 percent on month and imports to grow 3.3 percent. At 2.45 am ET, France's external trade data is due for July. The deficit totaled EUR 8 billion in June.
At 3.00 am ET, foreign trade figures are due Hungary and Austria. Hungary's trade surplus is seen at EUR 235 million in July.
Half an hour later, Statistics Sweden publishes industrial production and new orders data.
At 4.00 am ET, Italy's Istat releases retail sales figures for July. Sales had increased 12.1 percent on month in June.
At 5.00 am ET, Eurostat publishes euro area revised GDP data. The statistical office is expected to confirm 12.1 percent sequential fall in the second quarter.
JAPAN JULY CORE MACHINE ORDERS CLIMB 6.3% ON MONTH
The total value of core machine orders in Japan gained a seasonally adjusted 6.3 percent on month in July, the Cabinet Office said on Thursday - coming in at 751.3 billion yen.
That beat expectations for an increase of 1.9 percent following the 7.6 percent decline in June. On a yearly basis, core machine orders dropped 16.2 percent - also beating forecasts for a fall of 18.3 percent after tumbling 22.5 percent in the previous month.
Government orders plummeted 30.4 percent on month and 18.5 percent on year in July, while orders from overseas gained 13.8 percent on month and sank 25.3 percent on year.
Orders from agencies rose 2.3 percent on month and dropped 15.0 percent on year.
For the third quarter of 2020, core machine orders are forecast to have fallen 1.9 percent on quarter and 15.5 percent on year.
The total value of machinery orders received by 280 manufacturers operating in Japan - including volatile ones for ships and those from electric power companies - increased by 7.0 percent in July from the previous month and fell 19.4 percent on year.
Will the US dollar weaken against major currencies in September?
Almost all majors form reversal patterns relative to the US dollar. EUR/USD and NZD/USD have already created conditions for purchases. You should pay attention to the USD/CAD pair which already allows you to open deals to buy the Canadian dollar. When looking at the dollar index, it is important to note that it is trading within the accumulation zone. If all majors continue to form reversal patterns, the index will be retested by the WCZ 1/2 92.68-92.59. To form a reversal pattern on the index, you will need to push through this zone and fix it below it. While the index is trading within the correction, it is worth partially fixing purchases for the main currency pairs. The probability of corrective movements and a slight strengthening of the dollar is possible after a repeated test of the control zone. The model is planned to be implemented within the current week.
Strong demand in the WCZ 1/2 test indicates that major players are interested in this mark. The second test will be crucial for the movement in the second half of September. Those who trade the index, you need to prepare for re-entering the buy or the hold already open. For those who work with majors, it is necessary to take this into account when partially fixing profit transactions.
EUROPEAN ECONOMICS PREVIEW: UK CONSUMER PRICE DATA DUE
Consumer and producer prices from the UK are due on Tuesday, headlining a light day for the European economic news.
At 2.00 am ET, the Office for National Statistics is set to publish UK consumer and producer prices for August. Inflation is forecast to ease to 0.1 percent from 1 percent in July.
Economists forecast UK output prices to fall 0.7 percent annually, following a 0.9 percent decline a month ago. Likewise, the decline in input prices is expected to slow to 4.9 percent from 5.7 percent.
At 3.00 am ET, the Czech Statistical Office issues producer prices for August. Prices are expected to drop 0.1 percent on year.
At 4.30 am ET, the Office for National Statistics releases UK house price data for June.
Half an hour later, Eurostat publishes external trade data for July. The euro area trade surplus is seen at EUR 12.6 billion versus EUR 21.2 billion in June.
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