Eurozone Core Inflation disappointed and came in at +0.9% vs +1% expected
06 December 2017
On the macro side, data is robust, and we feel that we have been writing this sentence every week for months now!
- US: better data in real estate is getting confirmed with pending home sales soaring and positive construction spending. The consumer confidence index is at its highest point, Q2 GDP has been revised slightly upwards and ISM Manufacturing index is at 58.2, a very high level,
- Eurozone: disappointment on the headline inflation which stands at 1.5% vs 1.6% expected, moreover core inflation is at 0.9% vs 1% expected. PMI Markit manufacturing indices remain strong at 60.1 and GDP continues to be revised upwards,
- China: PMI index is in line with overall consensus.
Mr. Powell was confirmed by Senate and gave his first official speech. There is nothing new, it is the same speech as Mrs. Yellen, that means continuation in gradual rate hiking, inflation oversight, balance sheet reduction under way, etc.
First good news for the UK for a long time: it looks like European and British authorities have reached a deal regarding breakup fee. It should be around €50bn.
The next fortnight will be busy with macro data and central banks. Indeed, markets could move more than the last two weeks.
No significant move on equity markets last week, neither on fixed income markets with Bund close to 0.30%, a level we still consider far too low.
- La Française Allocation Share Class R
- La Française Allocation Share Class I
- La Française Allocation Share Class S
The information and material provided do not, by any means, represent advice, offers, solicitations or recommendations for investing in specific investments. All statements reflect the opinions of their authors at their publication date and do not constitute a contractual commitment on behalf of the management company. These assessments are subject to change without notice, within the prospectus’ limitations, which is the only legally binding document. La Française Group declines liability in any form for any direct or indirect damage resulting from the use of this publication or the information that it contains. This publication may not be reproduced in full or in part, disseminated or distributed to any third party without the prior written consent of La Française Group.
La Française Allocation is a French UCITS in regards to the 2009/65/CE Directive. The Fund received AMF authorization on July 15th 2003 and was launched on July 31st 2003. The strategy changed as of July 19th 2012. Management company : La Française Asset Management – Paris – approved by the “Autorité des Marchés Financiers” under N GP97076 on July 1st, 1997.
For more information regarding the French regulatory authority - Autorité des Marchés Financiers (AMF) – please visit www.amf-france.org.www.amf-france.org.