EUROZONE DATA: Sep Flash PMI: Another Solid Month Of Activity, Inflation Higher

The Eurozone-wide September flash PMI confirms another solid month of activity, extending resilience in the face of the US-Iran war energy shock. Both services and manufacturing components contributed, though the former was the main upside surprise versus consensus. Taken alongside hawkish developments inflation components, there is little to push back on the hawkish rhetoric employed at the ECB's September decision. Questions around the timing of future hike/hikes remains though. * The data has helped front-end EUR rates away from early highs, with ERM7 now 2.5 ticks below yesterday's settlement levels at 96.540 (vs a high of 96.610 earlier). Key notes from the release (focusing on ex-France and Germany where appropriate) * "The rest of the eurozone as a whole registered a solid but softer rise in output." * "The picture for new orders at eurozone companies was similar to that for business activity, with growth recorded for the third month running in September." * "The rest of the euro area as a whole saw staffing levels increase modestly" * "Inflationary pressures intensified in September, with both input costs and output prices increasing at the sharpest rates in four months.".