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22 May 2014
European Outlook: Stronger China PMIs boosts risk appetite
FXStreet (London) - Flash Chinese manufacturing PMIs came in stronger than expected overnight, helping to support risk sentiment. Chinese factories reported their strongest performance in five months, with the HSBC Flash China Manufacturing Purchasing Managers' Index (PMI) rebounding to 49.7 in May after a final reading of 48.1 in April. However, the employment component remains weak, falling to 47.3, while the headline figure remains below 50, indicating that Chinese manufacturing remains in contraction.
Bothe the Aussie and Kiwi dollar rallied on improved risk appetite, while the Kiwi dollar was given further support by encouraging job advertisements numbers.
French PMIs disappoint
The Markit Flash France Composite Output Index posted a three-month low of 49.3, down from 50.6 in April, its first decline in three months. The drop indicates that French private sector output has fallen into contraction.
Lower output was recorded across the service and manufacturing sectors; in both cases the falls were the first since February.
Employment in the French private sector fell for a seventh successive month.
German PMI numbers are expected to be more healthy, with a slight decline to 54.0 expected after 54.1 last month.
The second reading of UK first quarter GDP is expected to be unchanged at 3.1 percent year-on-year.
With little of note in the FOMC minutes released yesterday, today’s UK housing market numbers will be under increased scrutiny, with expectations of an increase in existing home sales to 4.68m.
Bothe the Aussie and Kiwi dollar rallied on improved risk appetite, while the Kiwi dollar was given further support by encouraging job advertisements numbers.
French PMIs disappoint
The Markit Flash France Composite Output Index posted a three-month low of 49.3, down from 50.6 in April, its first decline in three months. The drop indicates that French private sector output has fallen into contraction.
Lower output was recorded across the service and manufacturing sectors; in both cases the falls were the first since February.
Employment in the French private sector fell for a seventh successive month.
German PMI numbers are expected to be more healthy, with a slight decline to 54.0 expected after 54.1 last month.
The second reading of UK first quarter GDP is expected to be unchanged at 3.1 percent year-on-year.
With little of note in the FOMC minutes released yesterday, today’s UK housing market numbers will be under increased scrutiny, with expectations of an increase in existing home sales to 4.68m.