The euro zone’s economic engine is starting to hum again, albeit cautiously. In July, business activity across the 20-member bloc accelerated to its fastest pace in nearly a year, driven by a stronger services sector and tentative signs of life in manufacturing. According to flash survey data published by S&amp;P Global and Hamburg Commercial Bank (HCOB), the region’s composite Purchasing Managers’ Index (PMI) rose to 51.0, an 11-month high, up from 50.6 in June. The reading beat Reuters’ poll forecast of 50.8 and marked a second straight month of growth.<h2>Services sector leads the recovery</h2>The July rebound was primarily powered by the services sector. The services PMI rose to 51.2, from 50.5 in June, surpassing analyst expectations of 50.7. “The euro zone economy appears to be gradually regaining momentum,” said Cyrus de la Rubia, Chief Economist at HCOB, in remarks quoted by Reuters. “The recession in the manufacturing sector is coming to an end, and growth in the services sector accelerated slightly in July.”&nbsp;The composite new business index, a proxy for demand, climbed to 50.0, its highest in over a year, indicating stabilisation after months of contraction.<h2>Factories still in contraction, but improving</h2>While still below the growth threshold, manufacturing activity showed tentative recovery. The manufacturing PMI improved to 49.8 in July from 49.5 in June, slightly better than expected.&nbsp;However, factory output edged down to 50.7 from 50.8, and the increase in activity was largely due to the completion of backlogged orders. The backlogs of work index rose to 49.0 from 47.1, its best level in nearly three years, indicating that the drag on manufacturing may be easing.<h2>Inflation pressures ease across services</h2>Input costs in the services sector cooled sharply. The services input price index fell to 56.7, a nine-month low, down from 58.1, while output prices also declined, signalling reduced inflationary pressures.&nbsp;This comes as the euro zone’s headline inflation held at 2.0 per cent in June, as per official data, meeting the European Central Bank’s (ECB) target.<h2>ECB decision looms as rate cut hopes build</h2>The ECB is expected to hold interest rates steady at its July 25 meeting, according to all 84 economists surveyed by Reuters. However, a slight majority anticipate another rate cut later this year, most likely in September, if inflation continues to soften and growth remains fragile.&nbsp;(With inputs from agencies)

Manufacturing PMI improved slightly to 49.8, indicating an end to recession signs. Inflation pressures eased, and the ECB may maintain interest rates, with potential cuts anticipated if trends persist.

The euro zone’s economic engine is starting to hum again, albeit cautiously. In July, business activity across the 20-member bloc accelerated to its fastest pace in nearly a year, driven by a stronger services sector and tentative signs of life in manufacturing. According to flash survey data published by S&P Global and Hamburg Commercial Bank (HCOB), the region’s composite Purchasing Managers’ Index (PMI) rose to 51.0, an 11-month high, up from 50.6 in June. The reading beat Reuters’ poll forecast of 50.8 and marked a second straight month of growth. Services sector leads the recovery The July rebound was primarily powered by the services sector. The services PMI rose to 51.2, from 50.5 in June, surpassing analyst expectations of 50.7. “The euro zone economy appears to be gradually regaining momentum,” said Cyrus de la Rubia, Chief Economist at HCOB, in remarks quoted by Reuters. “The recession in the manufacturing sector is coming to an end, and growth in the services sector accelerated slightly in July.” The composite new business index, a proxy for demand, climbed to 50.0, its highest in over a year, indicating stabilisation after months of contraction. Factories still in contraction, but improving While still below the growth threshold, manufacturing activity showed tentative recovery. The manufacturing PMI improved to 49.8 in July from 49.5 in June, slightly better than expected. However, factory output edged down to 50.7 from 50.8, and the increase in activity was largely due to the completion of backlogged orders. The backlogs of work index rose to 49.0 from 47.1, its best level in nearly three years, indicating that the drag on manufacturing may be easing. Inflation pressures ease across services Input costs in the services sector cooled sharply. The services input price index fell to 56.7, a nine-month low, down from 58.1, while output prices also declined, signalling reduced inflationary pressures. This comes as the euro zone’s headline inflation held at 2.0 per cent in June, as per official data, meeting the European Central Bank’s (ECB) target. ECB decision looms as rate cut hopes build The ECB is expected to hold interest rates steady at its July 25 meeting, according to all 84 economists surveyed by Reuters. However, a slight majority anticipate another rate cut later this year, most likely in September, if inflation continues to soften and growth remains fragile. (With inputs from agencies)

The euro zone’s economy shows cautious recovery, with July business activity hitting an 11-month high at a composite PMI of 51.0.

Euro zone activity picks up pace as services rebound, PMI hits 11-month high

Growth in India's business activity picked up slightly in October after softening last month, led by stronger demand in the manufacturing sector, according to a survey that also showed job creation rose at the fastest pace since February 2006 as detailed in a report by Reuters.

India's Composite Purchasing Managers' Index rose

The Reuters report further stated that, HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&amp;P Global, rose to 58.6 this month from September's final reading of 58.3, which was a 10-month low. The headline index has been above the 50-level separating growth from contraction for 39 consecutive months - the longest expansionary streak since June 2013.

"India's flash manufacturing PMI indicated that the manufacturing industry regained growth momentum in October. Several components accelerated after a modest slowdown over the past two to three months," noted Pranjul Bhandari, chief India economist at HSBC.

"New orders and new export orders expanded at faster rates, providing a good omen for industrial production for the remaining months of 2024."

Backed by strong sales, the manufacturing index showed bigger gains to 57.4 from 56.5 in September, while the dominant services industry reading rose slightly to 57.9 this month from 57.7. Goods production growth was at a two-month high.

That's encouraging news for India's manufacturing sector which accounts for less than one-fifth of the economy. Prime Minister Narendra Modi's government has been trying to boost goods production.

A government official recently said since the production-linked incentive scheme was launched, the country has attracted over $17 billion of investment, resulting in production worth about 11 trillion Indian rupees ($131 billion) and nearly a million jobs. The survey also noted increased international demand in October with a faster rise in overall exports.

That prompted companies to hire more staff with overall employment generation rising at the fastest pace in around eighteen-and-a-half years. Job creation in the services sector was higher than manufacturing.

Robust demand gave firms the leeway to pass on an acceleration in input costs to customers with prices charged rising at the steepest pace in three months. Companies reported higher prices for chemicals, eggs, meat, packaging, steel and vegetables. "Manufacturers' profit margins are still under pressure as input price inflation continued to pick up pace," Bhandari said.

The business outlook over the coming year was mixed with manufacturers at their most upbeat since July, while the sentiment faded somewhat for services companies, the survey showed, as concluded in the report.

Growth in India's business activity picked up slightly in October after softening last month, led by stronger demand in the manufacturing sector, according to a survey that also showed job creation rose at the fastest pace since February 2006 as detailed in a report by Reuters.

Growth in India's business activity picked up slightly in October after softening last month, led by stronger demand in the manufacturing sector, according to a survey that also showed job creation rose at the fastest pace since February 2006 as detailed in a report by Reuters. India's Composite Purchasing Managers' Index rose The Reuters report further stated that, HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.6 this month from September's final reading of 58.3, which was a 10-month low. The headline index has been above the 50-level separating growth from contraction for 39 consecutive months - the longest expansionary streak since June 2013. "India's flash manufacturing PMI indicated that the manufacturing industry regained growth momentum in October. Several components accelerated after a modest slowdown over the past two to three months," noted Pranjul Bhandari, chief India economist at HSBC. "New orders and new export orders expanded at faster rates, providing a good omen for industrial production for the remaining months of 2024." Backed by strong sales, the manufacturing index showed bigger gains to 57.4 from 56.5 in September, while the dominant services industry reading rose slightly to 57.9 this month from 57.7. Goods production growth was at a two-month high. That's encouraging news for India's manufacturing sector which accounts for less than one-fifth of the economy. Prime Minister Narendra Modi's government has been trying to boost goods production. A government official recently said since the production-linked incentive scheme was launched, the country has attracted over $17 billion of investment, resulting in production worth about 11 trillion Indian rupees ($131 billion) and nearly a million jobs. The survey also noted increased international demand in October with a faster rise in overall exports. That prompted companies to hire more staff with overall employment generation rising at the fastest pace in around eighteen-and-a-half years. Job creation in the services sector was higher than manufacturing. Robust demand gave firms the leeway to pass on an acceleration in input costs to customers with prices charged rising at the steepest pace in three months. Companies reported higher prices for chemicals, eggs, meat, packaging, steel and vegetables. "Manufacturers' profit margins are still under pressure as input price inflation continued to pick up pace," Bhandari said. The business outlook over the coming year was mixed with manufacturers at their most upbeat since July, while the sentiment faded somewhat for services companies, the survey showed, as concluded in the report.

India's business activity accelerates in October, PMI reports

Factory activity in China plunged more than expected in October, official data showed Sunday, suggesting the industrial sector continued struggling as it grappled with tight power supply and surging raw material costs.

The key Purchasing Managers' Index (PMI) -- a gauge of manufacturing activity in the world's second-largest economy -- fell to 49.2 this month, down from 49.6 in September, said the National Bureau of Statistics (NBS).

Also Read |&nbsp;<a href="https://www.wionews.com/south-asia/fertiliser-shipment-row-chinese-embassy-blacklists-peoples-bank-of-sri-lanka-424943">Fertiliser shipment row: Chinese embassy blacklists People’s Bank of Sri Lanka</a>

This marks the second straight month in which China's PMI dipped below the 50-point mark separating growth from contraction.

A Bloomberg poll of economists had pegged the reading at 49.7, which would have been a slight improvement.

Although the country's PMI contracted when the spread of COVID-19 -- which first surfaced in the central city of Wuhan -- forced most business activity to a halt, life has largely returned to normal as strict measures brought the outbreak under control.

But the NBS said Sunday: "In October, due to factors such as still-tight power supply and the high costs of some raw materials, the manufacturing PMI fell."

Both the production and new-order indexes were in contraction, pointing to weakening supply and demand, senior statistician Zhao Qinghe said in a statement.

Meanwhile, the price index continued rising, reflecting higher purchase prices of raw materials such as petroleum and coal, and that of sales costs.

Also Read |&nbsp;<a href="https://www.wionews.com/world/due-to-fuel-shortages-china-rations-diesel-424700">Due to fuel shortages, China rations diesel</a>&nbsp;

The production index has fallen to among its lowest levels since 2005, said Pinpoint Asset Management chief economist Zhiwei Zhang -- warning of stagflation.

"A worrying sign is the passthrough of inflation from input prices," he said, adding this could pile pressure on consumer inflation.

Tommy Xie of OCBC Bank told AFP that smaller companies appear to be "paying the price for the power shortages", suggesting the need for more policy support.

Non-manufacturing activity fell in October also, official data showed, as authorities noted "the recovery of the service industry has slowed".

China's non-manufacturing PMI came in at 52.4, down from 53.2 in September.

While the reading still indicates expansion, helped by holiday activity in early October, the NBS said the threat of local outbreaks continued to cast a pall over consumer sentiment.

"The real situation could be worse," said Nomura chief China economist Lu Ting, noting that surveys may not reflect the impact of escalating anti-virus measures in late October.

"We expect another round of cuts of growth forecasts," Lu added.

Factory activity in China plunged more than expected in October, official data showed Sunday, suggesting the industrial sector continued struggling as it grappled with tight power supply and surging raw material costs.

Factory activity in China plunged more than expected in October, official data showed Sunday, suggesting the industrial sector continued struggling as it grappled with tight power supply and surging raw material costs. The key Purchasing Managers' Index (PMI) -- a gauge of manufacturing activity in the world's second-largest economy -- fell to 49.2 this month, down from 49.6 in September, said the National Bureau of Statistics (NBS). Also Read | Fertiliser shipment row: Chinese embassy blacklists People’s Bank of Sri Lanka This marks the second straight month in which China's PMI dipped below the 50-point mark separating growth from contraction. A Bloomberg poll of economists had pegged the reading at 49.7, which would have been a slight improvement. Although the country's PMI contracted when the spread of COVID-19 -- which first surfaced in the central city of Wuhan -- forced most business activity to a halt, life has largely returned to normal as strict measures brought the outbreak under control. But the NBS said Sunday: "In October, due to factors such as still-tight power supply and the high costs of some raw materials, the manufacturing PMI fell." Both the production and new-order indexes were in contraction, pointing to weakening supply and demand, senior statistician Zhao Qinghe said in a statement. Meanwhile, the price index continued rising, reflecting higher purchase prices of raw materials such as petroleum and coal, and that of sales costs. Also Read | Due to fuel shortages, China rations diesel The production index has fallen to among its lowest levels since 2005, said Pinpoint Asset Management chief economist Zhiwei Zhang -- warning of stagflation. "A worrying sign is the passthrough of inflation from input prices," he said, adding this could pile pressure on consumer inflation. Tommy Xie of OCBC Bank told AFP that smaller companies appear to be "paying the price for the power shortages", suggesting the need for more policy support. Non-manufacturing activity fell in October also, official data showed, as authorities noted "the recovery of the service industry has slowed". China's non-manufacturing PMI came in at 52.4, down from 53.2 in September. While the reading still indicates expansion, helped by holiday activity in early October, the NBS said the threat of local outbreaks continued to cast a pall over consumer sentiment. "The real situation could be worse," said Nomura chief China economist Lu Ting, noting that surveys may not reflect the impact of escalating anti-virus measures in late October. "We expect another round of cuts of growth forecasts," Lu added.

China factory activity slumps further on energy woes

Announcement of macroeconomic data points, global cues, movement of the rupee and crude oil will dictate <a href="http://www.wionews.com/business-economy/markets-open-in-green-sensex-up-by-over-250-points-rupee-strengthens-by-30-paise-186936">the stock market</a> trend in the first week of the new year, experts said.

PMI data for the manufacturing and services sectors are due this week, which will influence trading sentiment.

Besides, sales data from auto companies can trigger stock-specific action, they added.

"Market is expected to continue being volatile with selling occurring at higher levels. International factors will likewise influence domestic markets.&nbsp;

"Macros are nonetheless favourable but political uncertainty, strained global geopolitics and brewing trade wars will act as a catalyst for the negative sentiment prevailing in the equity markets," said Jimeet Modi, Founder and CEO, SAMCO Securities and StockNote.

"Consolidation in oil prices and strong rupee will provide stability in the macros which will provide confidence for investors," said Vinod Nair, Head of Research, Geojit Financial Services.

Investors will closely watch Q3 earnings, while global cues will dictate the direction of the market, he added.

Earnings season would kick-start from the second week of January, which will keep markets busy.

During the past week, the Sensex gained 334.65 points to finish at 36,076.72

Announcement of macroeconomic data points, global cues, movement of the rupee and crude oil will dictate the stock market trend in the first week of the new year, experts said.

Announcement of macroeconomic data points, global cues, movement of the rupee and crude oil will dictate the stock market trend in the first week of the new year, experts said. PMI data for the manufacturing and services sectors are due this week, which will influence trading sentiment. Besides, sales data from auto companies can trigger stock-specific action, they added. "Market is expected to continue being volatile with selling occurring at higher levels. International factors will likewise influence domestic markets. "Macros are nonetheless favourable but political uncertainty, strained global geopolitics and brewing trade wars will act as a catalyst for the negative sentiment prevailing in the equity markets," said Jimeet Modi, Founder and CEO, SAMCO Securities and StockNote. "Consolidation in oil prices and strong rupee will provide stability in the macros which will provide confidence for investors," said Vinod Nair, Head of Research, Geojit Financial Services. Investors will closely watch Q3 earnings, while global cues will dictate the direction of the market, he added. Earnings season would kick-start from the second week of January, which will keep markets busy. During the past week, the Sensex gained 334.65 points to finish at 36,076.72

Macro data, rupee, oil to guide markets this week: Experts

Stock market participants will be keenly awaiting the Union Budget to be presented on February 1 to decide their future course and will also have their eyes glued to corporate earnings, including of bluechips HDFC and ICICI Bank, this week, according to experts.

PMI data for the manufacturing sector which is due on Thursday would also influence trading sentiments.

Finance Minister Arun Jaitley will be presenting first post-GST budget on February 1, 2018. This will also be the last full budget of the ruling NDA government before the general elections of 2019.

&quot;Earnings upgrade is more likely after seeing the initial set of results but the current rich valuation and upcoming economic events may interrupt aggressive buying... The week ahead is eventful with a slew of economic data but the major event is the Union Budget and market will likely to brace more volatility,&quot; said Vinod Nair, Head of Research, Geojit Financial Services.

Among major firms scheduled to come up with their earnings this week are: HDFC, ICICI Bank, Bajaj Auto, NTPC, IOC, Reliance Communications and Tech Mahindra.

On expectations from the Budget 2018-19, IIFL Partner and Head of Research Amar Ambani said, &quot;In the last full Budget before the 2019 general elections, capital market investors would be keen to know of the government&#39;s stand on two critical issues: fiscal consolidation and tax burden on capital market investments.&quot;

&quot;Expectations are running high as it will be the first post-GST and last full-year Budget before the general elections in 2019. Markets expect government to follow fiscal prudence path and increase infrastructure and rural spending,&quot; said V K Sharma, Head Private Client Group and Capital Market Strategy, HDFC Securities.

 
Last week, the 30-share Sensex added 538.86 points, or 1.51 per cent; while the broader Nifty gathered 174.95 points, or 1.60 per cent.

PMI data for the manufacturing sector which is due on Thursday would also influence trading sentiments.

Stock market participants will be keenly awaiting the Union Budget to be presented on February 1 to decide their future course and will also have their eyes glued to corporate earnings, including of bluechips HDFC and ICICI Bank, this week, according to experts. PMI data for the manufacturing sector which is due on Thursday would also influence trading sentiments. Finance Minister Arun Jaitley will be presenting first post-GST budget on February 1, 2018. This will also be the last full budget of the ruling NDA government before the general elections of 2019. "Earnings upgrade is more likely after seeing the initial set of results but the current rich valuation and upcoming economic events may interrupt aggressive buying... The week ahead is eventful with a slew of economic data but the major event is the Union Budget and market will likely to brace more volatility," said Vinod Nair, Head of Research, Geojit Financial Services. Among major firms scheduled to come up with their earnings this week are: HDFC, ICICI Bank, Bajaj Auto, NTPC, IOC, Reliance Communications and Tech Mahindra. On expectations from the Budget 2018-19, IIFL Partner and Head of Research Amar Ambani said, "In the last full Budget before the 2019 general elections, capital market investors would be keen to know of the government's stand on two critical issues: fiscal consolidation and tax burden on capital market investments." "Expectations are running high as it will be the first post-GST and last full-year Budget before the general elections in 2019. Markets expect government to follow fiscal prudence path and increase infrastructure and rural spending," said V K Sharma, Head Private Client Group and Capital Market Strategy, HDFC Securities. Last week, the 30-share Sensex added 538.86 points, or 1.51 per cent; while the broader Nifty gathered 174.95 points, or 1.60 per cent.

Union Budget, earnings key triggers for equities this week

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Euro zone activity picks up pace as services rebound, PMI hits 11-month high

India's business activity accelerates in October, PMI reports

China factory activity slumps further on energy woes

Macro data, rupee, oil to guide markets this week: Experts

Union Budget, earnings key triggers for equities this week