China’s Manufacturing PMI missed forecast in July, coming at 51.4 vs 51.5 expected and 51.7% in June.

The data showed China’s manufacturing sector growth cooled slightly in July, on lower foreign demand for Chinese goods, but PMI index remains above the 50 threshold that separates growth from contraction for the 12th straight month. On the other side, booming construction on Chinese government’s support to the infrastructure boosted construction and props up the world’s second-largest economy.

Eurozone inflation data are in focus of the European session. Inflation numbers are expected to stay unchanged at 1.3% in July (y/y) and core CPI at 1.1%. This is well below ECB’s target of just below 2% and stubbornly low inflation could cool down ECB plans to start tightening policy, as growth in the bloc is gaining pace, after data showed the Eurozone has grown in the first half of the year above a half percentage point, for the first time since 2007/8.

Unemployment rate in the Eurozone is expected to tick lower to 9.2% in June, from 9.3% previous month and remains in a steady descend from its highest levels above 12%, hit in late 2013.
The data is due at 09:00 GMT.

US Pending home sales are due at 14:00 GMT and expected to rise to 1.0% in June after -0.8% last month and past three months contraction.