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Euro growth concerns persist as PMIs decline – Danske

FXStreet (Barcelona) - The Danske Bank Research Team notes that Eurozone’s growth concerns persist after yesterday’s weak euro data puts further pressure on the ECB.

Key Quotes

“The Euro flash composite PMI declined by 0.7 points to 51.4 in November and new orders went below 50 for the first time since June 2013, thus still pointing to a declining trend in euro-area activity."

"The decline was most pronounced in the service sector, with the service PMI slipping to the lowest level in a year, reflecting continued sluggish domestic demand.”

“Meanwhile, the slight decline in the manufacturing index was driven by Germany and France, where the outlook in the latter continues to be weak as reflected by the decline in new orders.”

“While we look for euro-area activity to improve in 2015, yesterday’s weak data will put further pressure on the ECB. The ECB yesterday published the legal document of its ABS purchasing programme, implying that the programme is effective as of today.”

“However, in our view, the announced measures will prove insufficient to reach the EUR3trn balance sheet target and expectations of additional easing are likely to persist, at least in the near term.”

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