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(CEP News) - Rising construction output in the euro zone and a contracting trade deficit in Italy highlighted what was a relatively quiet overnight in Europe. Across the Pacific, things were also quiet on the macroeconomic data front with the RBA releasing foreign exchange transactions.
According to Eurostat, euro zone construction output rebounded and increased 0.2% in May on a monthly basis after slipping 0.6% in the previous month. April's figure was revised up from an initial reading of -0.8%. Year-over-year, construction production fell by a further 1.1% following April's 1.7% decline, which was revised up from an initial reading of -2.4%. On Thursday, Italy's foreign exchange office reported that the Italian current account deficit increased to €6.985 billion in May from €4.13 billion in the previous month. The exchange office also announced that the Italian capital account showed a surplus of €39 million while the financial account came in at a surplus of €12.61 million. According to the National Institute of Statistics (Istat), the Italian trade surplus within the European Union rose to €1.713 billion in May, up from the previous month's €753 million surplus level. April's reading was revised up from a previous surplus figure of €770 million. Istat also reported that the Italian total trade balance improved, coming in at a deficit level of €59 million in May, down significantly from a previous deficit level of €1.022 billion. April's reading was revised up from a deficit figure of €1.004 billion. Finnish producer price inflation shot up to 4.4% on a yearly basis in June, up from the 3.7% rate observed in the previous month, according to data from Statistics Finland. On a monthly basis, the producer price index increased 0.6% following the 0.8% gain in May, due mainly to rising oil and electricity costs. In an interview with Dutch magazine Elsevier, European Central Bank Governing Council member Nout Wellink emphasized that it would be a mistake to believe that inflation would decelerate as the economy slowed. Wellink added that the best contribution to slowing growth that the central bank could make would be reducing inflation growth. Speaking on France's cable news channel La Chaîne Info (LCI) on Thursday, French Finance Minister Christine Lagarde said inflation would remain at high levels before slowing in August. "We'll finish the year at a clearly lower rate," Lagarde said. On July 16, the National Institute for Statistics and Economic Studies (INSEE) reported that the French consumer price index rose 4.0% in EU harmonized terms in June, the highest gain on record. A final look at the leading economic index in Japan for May showed an upward revision to the preliminary 92.6% month-over-month increase to a gain of 92.9%. However, the coincident index was revised down to a 103.0% rise compared to the preliminary 103.3% gain. The foreign purchase of Japanese stocks fell ¥242.2 billion in the week ending July 11 after selling off ¥193.9 billion in the previous week. Buying of bonds advanced ¥528.2 billion following the previous week's ¥504.5 billion buy-up. Meanwhile, the Japanese bought ¥12.9 billion in foreign stocks following the ¥121.0 billion purchased in the prior week. The Japanese also sold ¥58.4 billion in foreign bonds following the previous week's ¥98.7 billion buy-up. A preliminary look at the balance of payments' import component in Australia showed a 2.0% month-over-month pullback in June compared to May's 7.0% increase. The Reserve Bank of Australia also reported foreign exchange transactions worth A$875 million in June compared to May's A$336 million level. In stock news, Nokia missed estimates of €0.34 earnings per share, reporting a €0.29 eps. However, sales totalled €13.2 billion versus estimates for €12.8 billion. JP Foreign Buying Japan Bonds W/E July 11 +¥528.2B vs. Revised: +¥504.5B Prior: +¥515.1B JP Foreign Buying Japan Stocks W/E July 11 -¥242.4B vs. Revised: -¥193.9B Prior: -¥192.5B JP Japan Buying Foreign Stocks W/E July 11 +¥12.9B vs. Revised: +¥121.0B Prior: +¥123.3B JP Japan Buying Foreign Bonds W/E July 11 -¥58.4B vs. Revised: +¥98.7B Prior: +¥97.0B AU Preliminary BoP Imports (M/M) (SA) June -2.0% vs. Prior: +7.0% AU RBA Foreign Exchange Transactions June +A$875M vs. Prior: +A$336M JP Leading Index CI May Final +92.9% vs. Prior: +92.6% JP Coincident Index CI May Final +103.3% vs. Prior: +103.0% IT Trade Balance (Total) May -€59M vs. Revised: -€1022.0B Prior: -€1004.0M IT Trade Balance May +1713.0M vs. Revised: +€753.0M Prior: + €770.0M IT Current Account May -€6985.0M vs. Prior: -€4129.0M EU Construction Output (M/M) (SA) May +0.2% vs. Revised: -0.6% Prior: -0.8% EU Construction Output (Y/Y) (WDA) May -1.1% vs. Revised: -1.7% Prior: -2.4% By Erik Kevin Franco,
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, edited by Nancy Girgis,
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