The Dow Jones became the latest index to ignore the globe’s manufacturing struggles, joining in with the March-opening rebound found in Europe.
Both of the US manufacturing PMIs dramatically undershot expectations. The final Markit reading for February fell to 53.0 against the previously stated 53.7, while the ISM number saw a huge drop from 56.6 to 54.2 month-on-month.
Granted, these numbers are a lot better than what was posted by the UK, China and the Eurozone – the latter 2 regions saw their respective manufacturing sectors stuck in contraction territory – earlier in the day, but they are nevertheless cause for concern.
Not that investors were too bothered, turning a blind eye to the economic slowdown in favour of a more generalised rebound. The Dow Jones added 100 points to tickle 26000 – admittedly well off the 170 point rise suggested by the futures before the PMIs were released – with the FTSE nudging 0.2% higher, and the DAX surging to a near 4 month high of 11600.
There wasn’t even that much reaction on the forex markets. With each region suffering manufacturing-wise, the dollar, euro and pound were largely flat against each other, the single currency just about the winner as it added 0.1% against both its rivals.
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