Euro drops as PMIs reignite growth fears but stocks shrug

Just a day after stronger Chinese macro pointers helped to alleviate concerns over a global economic slowdown, that optimism has quickly faded with the latest Eurozone data once again dampening expectations over growth. Reflecting the weakness in data, copper prices have given up their entire gains from yesterday and some, while the euro has dropped on expectations that Eurozone monetary policy could remain extremely accommodative for even longer now than previously expected. However, stock market bulls have so far shrugged off the poor data and chosen instead to concentrate on the outlook for rates remaining low for longer, as they have done so since the turn of the year. So, after a weaker start, European indices have now turned higher on the day.

Data recap: more woes for Eurozone’s manufacturers

The latest purchasing managers’ index (PMI) from Eurozone’s manufacturing (47.8) sector not only disappointed expectations but it remained comfortably below that boom/bust level of 50.0 for the third consecutive month, suggesting activity declined yet again. The Eurozone’s largest economy, Germany (44.5), was again the weak spot. However, Germany’s services sector PMI (55.6) beat expectations and French services sector (50.5) activity unexpectedly grew – although only just. Even so, although the Eurozone services (52.5) sector as a whole expanded, this was still at a slower pace compared to the previous reading. But there was good news from the UK where retail sales unexpectedly jumped 1.1% last month – not that it mattered much for the pound!

Looking ahead: long weekend break

Most financial markets will be closed in observance of Good Friday tomorrow, while bank holidays in several regions on Monday means irregular trading activity will continue at the start of next week. However, before the long weekend break starts, we will have some further data to look forward to from North this afternoon: Canadian and US retail sales, as well as US unemployment claims, Philly Fed manufacturing index, business inventories and CB leading indicators.

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.