ETX Capital Daily Market Bite, 3rd June, 2013: European Markets Hit By Poor China PMIs
June 3, 2013 11:29 am
June 3rd 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Poor manufacturing numbers out of China and Australia together with another day of hefty losses for the Japanese market combine to weigh on investor sentiment this morning in Europe. China’s HSBC PMI manufacturing index contracted more than expected, in at 49.2 in May from 50.4 in April, sitting below the 50 mark which signals contraction [above 50 signals expansion]. China’s slowdown hurts Australia’s manufacturing activity which contracts for the 23rd straight month in May while India’s manufacturing barely ekes out expansion in May.
Friday’s late-selloff on Wall Street set the tone for weakness in Asian trade overnight, feeding into the European market open. Better than expected data out of the US on Friday refuelled fears the US Fed will unwind asset purchases in forthcoming months. Traders are now eyeing the release of manufacturing numbers out of the euro zone, UK and the US all due during the course of the session.
Euro zone PMIs are expected to come in a little better at around 47.8 but still below the 50 mark with German and French readings likely to be in the spotlight given the recent weak batch of data out of both countries. The UK PMI is expected to decline a touch as is the US ISM manufacturing report, both expected to remain below the 50 mark. Looking ahead to the rest of the week, we have PMI services out of the euro zone on Wednesday while on Thursday, we have BOE and ECB rate meetings. Friday sees the release of US nonfarm payrolls which will be the highlight of this week’s heavy macro calendar.
June 3rd 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Poor manufacturing numbers out of China and Australia together with another day of hefty losses for the Japanese market combine to weigh on investor sentiment this morning in Europe. China’s HSBC PMI manufacturing index contracted more than expected, in at 49.2 in May from 50.4 in April, sitting below the 50 mark which signals contraction [above 50 signals expansion]. China’s slowdown hurts Australia’s manufacturing activity which contracts for the 23rd straight month in May while India’s manufacturing barely ekes out expansion in May.
Friday’s late-selloff on Wall Street set the tone for weakness in Asian trade overnight, feeding into the European market open. Better than expected data out of the US on Friday refuelled fears the US Fed will unwind asset purchases in forthcoming months. Traders are now eyeing the release of manufacturing numbers out of the euro zone, UK and the US all due during the course of the session.
Euro zone PMIs are expected to come in a little better at around 47.8 but still below the 50 mark with German and French readings likely to be in the spotlight given the recent weak batch of data out of both countries. The UK PMI is expected to decline a touch as is the US ISM manufacturing report, both expected to remain below the 50 mark. Looking ahead to the rest of the week, we have PMI services out of the euro zone on Wednesday while on Thursday, we have BOE and ECB rate meetings. Friday sees the release of US nonfarm payrolls which will be the highlight of this week’s heavy macro calendar.
Visit http://www.etxcapital.co.uk/
Find us on social media to be kept up to date with the latest ETX Capital news:
Facebook: https://www.facebook.com/#!/ETXCapita…
Twitter: https://twitter.com/#!/etxcapital
LinkedIn: http://www.linkedin.com/company/44542…
ETX Capital’s RSS site: http://my.etxcapital.co.uk/
Related Posts: