PRODUCT PROFILE

Latest Dublin Prices

ISEQ steady-Irish manufacturing steady

Monday, September 03 09:16:29

The ISEQ is unchanged this morning at 3,156 as European markets focus on Thursday's ECB meeting in the hope that further action will follow from the Fed announcements on Friday. There are emerging issues of inflation resulting from the high cost of oil and this fact may well limit any action by the ECB as the balance of influence swings back to German attitudes.

Irish manufacturing is higher even if the rate of growth has slowed and the contrast with most of our European neighbours is worth comment by Davy Stockbrokers:

Markets will focus today on the health of the global manufacturing sector with the release of Purchasing Manager Indices (PMIs) for August. The preliminary release of the euro-area manufacturing PMI showed a reading of 45.3 in August, with markets expecting no revision today. So, the euro-area PMI surveys should reinforce expectations that euro-area GDP will contract again in Q3, following the contraction in Q2.

This morning's release of the Irish manufacturing PMI survey showed a reading of 50.9 in August, down from 53.9 in July. Although showing a material fall in August, Ireland's PMI remains above the 50 no-change level, well above the comparative European surveys. Today's release of Irish industrial production for July will also highlight the relatively robust performance of the manufacturing sector. In the year to June, Irish industrial production rose 9.2pc, compared with the 2.1pc decline in the euro-area aggregate.

Overnight, both the HSBC and official PMI survey, which gives a stronger weighting to state-owned enterprises, fell below the 50 no-change level. The HSBC index fell to 47.6 and the official PMI survey to 49.2, similar levels to those recorded in early 2009. However, Chinese stock market indices erased early losses as the weak PMI surveys were perceived to have increased the likelihood of further policy stimulus according to Davy Stockbrokers.