Friday, August 16 09:28:24
The ISEQ has opened steady this morning, then turned lower at 4,174, down just 21 points following yesterday's falls as markets turned back to issues of Central Banks' intervention levels.
Davy Stockbrokers looks at Irish trade data for June:
The Euro Stoxx 50 rose 0.4pc on Wednesday but the S and P500 fell 0.5pc. The news that euro area GDP expanded by 0.3pc in Q2 2013 did little to help the euro, currently trading at $1.329. Speculation on the pace that the Fed may taper its $85bn monthly asset purchases supported the dollar, with 10-year US treasury yields above 2.7pc. This followed comments from Atlanta Fed President Dennis Lockhart on Tuesday that he could not rule out the Fed reducing its stimulus in its September meeting.
The labour market has been notably absent from the UK recovery. In the year to May, UK employment had been broadly flat in contrast to the rebound in GDP and the sharp improvement in PMI surveys and other indicators of economic activity in Q3. However, yesterday's labour market data showed employment up 0.2pc, or 69,000, in the three months to June. Furthermore, the timelier claimant count measure of unemployment fell to 4.3pc in July, suggesting that employment growth may continue to strengthen. That said, regular earnings growth remains weak, close to 1pc.
Today's UK retail sales figures for July are expected to show a strong 0.7pc rise - with consumer confidence reaching a three-year high and the good weather expected to help spending. Survey indicators such from the British Retail Consortium and CBI Reported Sales survey also point to a strong July for UK retailers.
Irish trade data for June show goods exports volumes up 2.3pc in Q2 2013 after a sharp 4.9pc fall in Q1 2013. Irish goods exports have been hit hard by the pharmaceutical patent cliff - down 10.2pc in the year to Q1 2013. However, yesterday's data suggest that the worst may be over. Indeed, the trade data are consistent with a bounce back in industrial production by 1.3pc in Q1 and 3.3pc in Q2 across both the modern (multinational-dominated) and traditional sectors according to Davy Stockbrokers.