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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: zonder who wrote (12609)	10/1/2004 8:57:26 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Sterling slumps to 8-mth low vs euro as mkts scale back Nov rate hike chances Friday, October 1, 2004 11:06:10 AM afxpress.com LONDON (AFX) - The pound fell to an 8-month low against the euro, taking the single European currency above the psychologically important 0.69 stg barrier Analysts said markets are now far less certain that the Bank of England will put up interest rates again in November as previously expected, taking away some of the premium the pound has benefited from At 11.42 am, the euro was at 0.6908 stg from 0.6874 at 9.40 am. Against the dollar, the pound slipped under 1.80 usd to 1.7940 usd from 1.8043. The reassessment follows a string of weak UK data, the latest being the sharp drop in UK manufacturing activity in September The week started with evidence of slowing mortgage lending and approvals only to followed by a weaker GDP breakdown in the second quarter, a larger-than-expected current account deficit, weaker consumer confidence and declining retail sales. Already, bond markets have scaled back expectations of another UK rate hike before the year ends, pricing in a less than 50 pct chance of a hike in November But whether the market has raced ahead of itself, remains to be seen. November had been touted as the month for the final hike in 2004 as the Bank of England publishes its own forecasts for growth and inflation then. The central bank has been on a rate hiking cycle since November last and to date has put up rates five times, taking the benchmark repo rate from near 40-year lows of 3.50 pct to 4.75 pct. Ross Walker, economist at RBoS, said November is now likely to be a closer call than previously thought He still expects a Nov hike, even though the nine-strong rate setting Monetary Policy may show a split vote

To: zonder who wrote (12609)	10/1/2004 9:06:14 AM
From: mishedlo	Respond to of 116555

Euro zone Sept manufacturing PMI 53.1 vs 53.9 in Aug, 53.7 expected Friday, October 1, 2004 8:30:41 AM LONDON (AFX) - Euro zone manufacturing sector PMI fell to 53.1 in September from 53.9 the previous month, according to market sources. The September reading also falls short of expectations of 53.7. Still, the latest data remains above the 50 point cut-off which indicates growth. The index remained unchanged in France but took a tumble in the area's biggest economy, Germany, where growth is expected to be modest at best.