😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

StockBeat: Europe's Stocks Roar as China's PMI Rebounds

Published 01-01-2001, 05:30 am
Updated 01-04-2019, 02:06 pm
© Reuters.

By Geoffrey Smith

Investing.com -- Europe’s stock markets have started the second quarter with a bang, in another emphatic reminder of how China’s economy seems to be more important than the domestic one.

At 04:15 AM ET (08:15 GMT), the benchmark Euro Stoxx 600 was at 382.74, up 3.66 points, or 1.0%.

It’s no exaggeration to say that this is all due to news from China, where the private-sector Caixin Purchasing Managers’ Index leaped to its highest since August, suggesting that the worst of the global economic slowdown could be past.

By contrast, local PMIs have again disappointed, with flash readings in France, Germany and Italy all heading lower and falling short of expectations. The flash reading for the euro zone’s PMI fell unexpectectly to 47.5, still deep in contractionary territory.

No matter: if China is recovering, it will drag Europe with it. It’s no accident that the most export-sensitive of Europe’s markets, Gernamy, is leading the pack with a rise of nearly 1.4%, with the big auto names and other cyclicals such as Covestro (DE:1COV) and BASF (DE:BASFN) faring well. The Midcap DAX, made up largely of suppliers to the big names of German industry, is also up over 1%.

Elsewhere, the U.K. FTSE 100 is up 1.0%, while France’s CAC 40 is up 0.9%

On a quiet day for corporate news so far, the airlines are standing out, falling after a profit warning from EasyJet (LON:EZJ). The U.K.-based discounter said its net loss for the first half of its fiscal 2019 year widened sharply to 275 million pounds ($358 million) and said it expected only a modest improvement in the second half. Its shares fell over 7% in early trading in London, dragging down rivals Ryanair Holdings (LON:RYA) by 5% and Wizz Air (LON:WIZZ) by 3%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.