Last week was marked by the end of a little expected summer rally on markets. In the course of the previous week, indices of leading trading platforms either remained flat or registered a slight downward trend.

News coming in the course of the previous week were, on the whole, not bad for markets. In particular, there was publication of several indicators giving evidence of stabilization in the euro-area economy. Firstly, the consolidated Purchasing Managers Index (PMI) for the euro-area grew to 50.4 points in July 2013 from 48.7 points a month earlier. A value of this indicator above 50 points is indicative of growing activity in the economy. Until July 2013, the consolidated PMI for the euro-area has been below this important level for 16 consecutive months. Secondly, the IFO Business Climate Index – the leading indicator for economic activity in Germany – grew from 105.9 points in June to 106.2 points in July 2013, which is a record-high value since March 2013. This index has been growing for three months in a row. Thirdly, unemployment in Spain went down in the second quarter of 2013 for the first time over the last two years – to 26.3% from 27.2% in the previous quarter.

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