The European Commission statistical agency is scheduled to release August industrial production data for the Euro area on 14 October. A chart at (VIEW LINK) shows movements in European industrial output since 1992. The chart highlights the loss of momentum in the most recent readings of this indicator. In July, European industrial production contracted by 1.5%. This came after the first increase in European GDP in the June quarter since the September quarter of 2011. A positive industrial production number for August would be a fillip to confidence even if it does not fully offset the contraction in the prior month. A negative number would cast doubt on another positive GDP outcome. Importantly, more hangs on the Europeans now with the US government in chaos over a failure to agree a budget, looming debt ceiling limits and partisan wrangling over health care policy.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Always enjoy your wires John, I think the situation in the US is really a short term distraction and I doubt a US default is on the cards. What looms after the debt ceiling resolution is that tapering comes back into the minds of investors/media. Some positive Euro GDP and employment data would be a nice way to dampen any negative sentiment.