Salient to Investors:
Euro-area manufacturing output shrank at the fastest pace in three years in June. Chinese output gauge indicated contraction. Japan reported its first trade deficit with the EU since it began tracking data in 1979.
Howard Archer at IHS Global Insight said the EU is dealing with serious tightening of fiscal policy in many countries, markedly rising unemployment, squeezed consumer purchasing power, tight credit and muted global growth limiting exports – all magnified by heightened problems in Greece and Spain.
Peter Vanden Houte at ING Group sees no significant recovery while the future of the euro zone remains in doubt.
Chris Williamson at Markit expects euro-region GDP to have fallen 0.6 percent in Q2, says the downturn is accelerating and spreading, with Germany on course for a marginal fall in GDP in Q2.
Jim O’Neill at Goldman Sachs Asset Management said the ECB has plenty of bullets left, suspects they’re hoping to get the summit out-of-the-way at the end of the month.