The UK PMI services index was revised down slightly to 60.5 for the final data from the flash reading of 60.8, but this was still the highest reading for eight months. Costs increased at the second-fastest rate in the past 25 years and the service prices increased at the strongest rate on record.
The data had little impact with markets monitoring global risk conditions closely. UK equities moved notably lower during the day which hampered the UK currency to some extent with concerns over the risk of capital outflows from the UK in relation to sanctions on Russia.
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The final Euro-zone PMI services index was revised down to 55.5 from the flash reading of 55.8. There was further strong upward pressure on costs with the second-highest reading on record and selling prices increased at the fastest rate on record. Minutes from February’s ECB council meeting noted that the main risk was no longer tightening policy too early but rather too late given the jump in reported inflation and that the inflation narrative needed to be changed. Markets, however, assumed that the commentary was out of date given the Ukraine crisis.
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10:00 EUR Retail Sales (YoY) (Jan) Forecast 9.1% Previous 2%
US initial jobless claims declined to 215,000 in the latest week from a revised 233,000 previously and below market expectations of 225,000 while continuing clams were little changed at 1.48mn. The latest employment report will be released on Friday, but a huge divergence from expectations will be needed to shift Fed expectations. The ISM services-sector index dipped to a 12-month low of 56.5 for February from 59.9 previously and well below consensus forecasts of 61.0. There was also a sharp slowdown in the rate of growth in new orders and output while employment was reported as declining on the month, although this was related to an important extent by difficulties in hiring and people leaving the workforce. Prices increased at a stronger rate on the month and close to the fastest rate on record.
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13:30 US Non Farm Payroll (Feb) Forecast 400k Previous 467k