Davy Research

Davy Morning Equity Briefing

Market Comment

Eurozone consumer confidence hits 16-year high

If the survey results are borne out, eurozone growth is accelerating sharply. Yesterday’s European Commission consumer confidence survey for June reached a 16-year high and could be accompanied by further gains in the PMI surveys, released later this morning. The flash eurozone PMIs are expected to hold firm at high levels. The big picture is that growth in the eurozone is now outpacing both the US and UK economies.

Paper & packaging

Positive pricing momentum continues in both Europe and the US; capacity prospects also improve

Positive pricing dynamics continue on both sides of the Atlantic as demand remains strong and containerboard inventories tight. The prospects for earnings forecasts in the sector are positive over the remainder of this year. This should be evident in DS Smith’s outlook statement when it reports FY results on Thursday, June 29th.