The PMI services for April came out today in both Germany and the Euro Zone showing better than expected readings indicating that the effects of a U.S credit meltdown are still limited, PMI rose in Germany above median estimates to 54.9 from 54.6, while for the Whole Euro Zone PMI rose to 52.0 from the prior and expected 51.8.
The U.K also released their services PMI for April, the index fell to 50.4 from 52.1 and below median estimates of 51.7, the U.K economy have been hit hard by the credit freeze that have spread from the U.S financial system into the U.K's, while the BOE started implementing some measures to ease pressures off their markets, moreover investors are still confused concerning the BOE's next rate decision!
The Euro Zone also released their producer price index for March, inflation on the producers level rose 0.7 percent on the month inline with estimates from 0.6% the prior month, while compared with a year earlier prices rose 5.7% from 5.3% and beating the 5.6% expected in the markets.
Rising food and energy prices are adding more pressures on inflation in the 15-nation economy, prices on the consumer level rose to a 16-year high to 3.6 percent in March, which supported the ECB Hawkish still stance, as the bank aims to tame inflation yet limited with options since the credit meltdown still poses threat to growth around the planet.
This week is mainly highlighted by rate decisions from both the ECB and the BOE, the ECB are widely expected to maintain their rates steady at 4.00 percent, however the BOE decision is falling under increased speculation, whether they will keep rates steady or cut another quarter will be revealed Thursday so till then watch out dear for what's coming your way!