Comment: China manufacture slides; Eurozone output positive
March 24, 2014 9:34 am
European markets opened relatively strongly today despite bad news from China, where HSBC figures show a weak first quarter for the country’s manufacturing sector, which slowed for the third month in a row. A slight dip in the markets is being attributed by some to a knock-on effect from Friday’s drop on Wall Street, caused by the US Federal Reserve’s announced intention to end tapering and raise the insurance rate sooner than originally thought. However, European financial news has been positive. Figures released this morning show that France’s Composite Output Index hit a 31-month high of 51.6, up from 47.9 in February. Meanwhile, Germany’s composite measure of manufacturing and services activity, whilst slipping slightly compared to last month, continues to remain in a range that is among the highest for three years. Finally, the Eurozone as a whole produced positive data showing New Order Growth at its highest since mid-2011, as well as expansion in Composite Output for the ninth consecutive month. Closer to home, the Co-op bank has announced its need for a further £400 million after discovering further evidence of misdemeanours. In merger news, Dixons and Carphone Warehouse have been granted an extension until May 19th with regard to £4 billion negotiations. The original deadline was 5pm today.
European markets opened relatively strongly today despite bad news from China, where HSBC figures show a weak first quarter for the country’s manufacturing sector, which slowed for the third month in a row.
A slight dip in the markets is being attributed by some to a knock-on effect from Friday’s drop on Wall Street, caused by the US Federal Reserve’s announced intention to end tapering and raise the insurance rate sooner than originally thought.
However, European financial news has been positive. Figures released this morning show that France’s Composite Output Index hit a 31-month high of 51.6, up from 47.9 in February. Meanwhile, Germany’s composite measure of manufacturing and services activity, whilst slipping slightly compared to last month, continues to remain in a range that is among the highest for three years. Finally, the Eurozone as a whole produced positive data showing New Order Growth at its highest since mid-2011, as well as expansion in Composite Output for the ninth consecutive month.
Closer to home, the Co-op bank has announced its need for a further £400 million after discovering further evidence of misdemeanours. In merger news, Dixons and Carphone Warehouse have been granted an extension until May 19th with regard to £4 billion negotiations. The original deadline was 5pm today.
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