REPOST: Euro Gains on Strong Manufacturing Data; Oil Falls: Markets Wrap

Confidence in Europe’s sustainable growth has increased on the back of a surprise gain in a gauge of euro-region manufacturing. Know more from Bloomberg:

The euro was one of the standout gainers in an otherwise listless day in markets, as strong European data boosted confidence in the region’s growth. Gold and yen benefited as comments from President Donald Trump provoked another bout of investor caution.

The surprise gain in a gauge of euro-region manufacturing did little to spur the Stoxx Euro 600 Index, however, which retreated led by WPP Plc after the world’s largest advertising company cut its revenue forecast. Trump’s threats to end the flagship North American trade agreement and shut down the government over funding for his Mexican wall drove futures on the S&P index lower. Oil turned back toward $47 a barrel after U.S. gasoline stockpiles rose.

Surging demand for ‘Made in the Euro Area’ goods is feeding an economy that is creating jobs and finally also seeing price growth accelerate, providing some succor for the European Central Bank before the start of a central bankers’ meeting in Jackson Hole tomorrow. But on the other side of the Atlantic, Trump’s latest comments once again raised concerns about the administration’s ability to deliver fiscal stimulus, while heightening unease about the future of global trade.

“The Nafta hot air may be as much an excuse to take a step back after Wall Street’s surge yesterday, as it is a legitimate concern about the president not appreciating nuances of inter-dependence embedded in trade deals,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “The ‘she loves me, she loves me not’ thought process could lead to on-off markets.”

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