European session – Euro resilient in the face of weak PMI business sentiment
October 24, 2013 12:20 pm
The euro pared gains but managed to remain relatively buoyant during European trading on Thursday, following weaker-than-expected Markit PMI business sentiment flash estimates for October.
Stocks were also little moved by the weak data, remaining positive during the session. The euro was flat versus the dollar at 1.3806. The Eurozone manufacturing PMI for October came in at 51.3, which was marginally less than expectations of 51.4 and higher than the previous month’s 51.1 reading.
The services PMI however badly missed expectations, coming in at 50.9 versus 52.4 expected and below a reading of 52.2 the previous month.
The slowdown in the PMIs – particularly those of France and of the service sector more widely, signaled that there would be little acceleration of the Eurozone economy during the final quarter of the year.
The readings were consistent with slow economic growth of 0.1%-0.2% during the fourth quarter.
In UK news, factory orders fell sharply during October according to the Confederation of British Industry, but the business outlook brightened as manufacturers became more optimistic.
Less than 24 hours before the crucial 3rd quarter UK GDP growth figures were to be released, sterling lost 0.25% against the dollar to trade at 1.6165.
Gold climbed 0.52% to 1342.08 dollars an ounce.
The dollar fell 0.21% versus the Japanese yen, to trade at 97.33.
The euro pared gains but managed to remain relatively buoyant during European trading on Thursday, following weaker-than-expected Markit PMI business sentiment flash estimates for October.
Stocks were also little moved by the weak data, remaining positive during the session. The euro was flat versus the dollar at 1.3806.
The Eurozone manufacturing PMI for October came in at 51.3, which was marginally less than expectations of 51.4 and higher than the previous month’s 51.1 reading.
The services PMI however badly missed expectations, coming in at 50.9 versus 52.4 expected and below a reading of 52.2 the previous month.
The slowdown in the PMIs – particularly those of France and of the service sector more widely, signaled that there would be little acceleration of the Eurozone economy during the final quarter of the year.
The readings were consistent with slow economic growth of 0.1%-0.2% during the fourth quarter.
In UK news, factory orders fell sharply during October according to the Confederation of British Industry, but the business outlook brightened as manufacturers became more optimistic.
Less than 24 hours before the crucial 3rd quarter UK GDP growth figures were to be released, sterling lost 0.25% against the dollar to trade at 1.6165.
Gold climbed 0.52% to 1342.08 dollars an ounce.
The dollar fell 0.21% versus the Japanese yen, to trade at 97.33.
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