For the second day in a row the European markets attempted rebounded from Monday’s sell-off, ignoring the mixed picture painted by Wednesday’s first few flash PMIs.
Starting with the Eurozone, the DAX and CAC rose 0.9% apiece after the bell. That puts the German index back across 12750, while leading its French counterpart back to 4825.
Yet these gains came somewhat in denial of the facts. For French investors, this not only meant surging numbers of covid-19 cases, but a weaker than forecast flash services PMI, the sector once again in contraction territory as it fell from 51.5 to 47.5. Even though the country lacks the severe second wave warning signs seen elsewhere, the German services reading was also a disappointment, down from 52.5 to 49.1.
In both nations, at least, there were improvements in manufacturing: in France the sector returned to growth at 50.9, while in Germany the PMI smashed estimates at 56.6 against the 52.0 forecast and the 52.2 seen in August.
Using those French numbers as a reference point, this doesn’t bode well for the UK. Analysts are expecting a flash manufacturing PMI of 54.3, down from 55.2 in August, with a services reading of 57.0 against last month’s 58.8.
The FTSE showed no trepidation, however, instead surpassing its Eurozone peers with a 1% increase, lifting it back above 5900. It helped the pound slipped 0.3% against the dollar and 0.2% against the euro.
As for the Dow Jons , after adding 140 or so points last night, it is looking to climb another 100 points this Wednesday, leaving it just above 27400. In terms of the US PMIs, analysts have estimated a fall from 53.1 to 52.5 in manufacturing, and from 55.0 to 54.5 in services.
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