Friday, October 23, 2020

Attention Trader! Read This Before Starting Trade In The European Session

 The main focus of today's European session was on the publication of manufacturing and services PMI data from the European and UK Zones which showed mixed readings in October.

French business activity continued to weaken during the month, with a more pronounced decline in the services sector following the implementation of curfews in major cities such as Paris earlier this month. The manufacturing sector, on the other hand, is growing at a slower pace.

In contrast to Europe's largest economy, Germany beat market expectations, with the manufacturing sector showing the strongest expansion since April 2018, supported by stronger factory output growth and new orders.

This strengthening could help offset the decline in the services sector and prove the level of resilience of the German economy in the face of the second wave of coronavirus.

Overall, survey results show that manufacturers enjoyed the fastest growth since early 2018 as orders soared amid rising global demand, but the implementation of new restrictions has had an impact on the services sector, especially demand in the severely affected hotel industry.

However, this situation is different from the manufacturing sector in the UK which recorded slower growth due to increased production and new orders which are still weak, as well as due to the reduction in employment in the manufacturing sector.

Meanwhile, the services sector lost momentum in October with the first drop since June, driven by a decline in new orders in the UK business.