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20 Feb 2014
European open: Weak Manufacturing PMIs from China and France
FXStreet (London) - The main focus overnight was further weak numbers out of China. February HSBC/Markit manufacturing PMI came in at 48.3 against consensus expectations of 49.5. The latest reading of the index following the January print of 49.6 indicates Chinese manufacturing is falling further into contraction. The HSBC/Markit index has a history of contradicting the official Chinese manufacturing PMI – scheduled for release on 1 March. However, the general momentum indicated by the HSBC/Markit survey suggests we may see a drop in last month’s 50.5 reading, though it may just about hand onto expansionary territory.
European manufacturing flash PMIs showed a big miss from France, with further contraction at 48.5 against expectations of a gain from last month’s 49.3 print to 49.6. German PMIs gained less than expected, but remained solidly in expansionary territory at 54.7, up from the January print of 54.3, but below expectations of a big gain to 56.3.
French consumer price index-linked inflation also missed expectations, falling 0.6 percent month-on-month to bring year-on-year CPI to a weak 0.8 percent.
US CPI is expected to edge higher, with month-on-month inflation adding 0.1 percent with year-on-year reaching 1.6 percent. Initial jobless claims are expected to show a small decline from 339k to 335k for the week ending February 14.
European manufacturing flash PMIs showed a big miss from France, with further contraction at 48.5 against expectations of a gain from last month’s 49.3 print to 49.6. German PMIs gained less than expected, but remained solidly in expansionary territory at 54.7, up from the January print of 54.3, but below expectations of a big gain to 56.3.
French consumer price index-linked inflation also missed expectations, falling 0.6 percent month-on-month to bring year-on-year CPI to a weak 0.8 percent.
US CPI is expected to edge higher, with month-on-month inflation adding 0.1 percent with year-on-year reaching 1.6 percent. Initial jobless claims are expected to show a small decline from 339k to 335k for the week ending February 14.