Despite improving PMIs across Europe, the markets remained firmly in the red following Trump’s latest attack on China.
On one hand, it was a relatively good morning for UK data. The flash manufacturing PMI rose from 32.6 to 40.6, while the services reading bounced from a truly horrific 13.4 to 27.8. On the other hand, the manufacturing and services PMIs still came in at 40.6 and 27.8, the awfulness of those readings only slightly dulled by comparisons to the month previous.
The situation was the same across the Eurozone, with the French, German and region-wide PMIs all improving month-on-month. In fact, all bar the German manufacturing reading also came in higher than forecast.
However, it was little comfort to investors. With Trump ploughing ahead with his daily twitter assaults on China, but this time combing it with a 20-page report detailing the superpower’s ‘malign activities’ in an attempt to take heat off his own mishandling of the coronavirus pandemic, investors are worried about the state of things between Washington and Beijing.
The FTSE shed 0.9%, forcing it back to 6020, while the Dow Jones is looking to drop 140 points when the bell rings on Wall Street. Admittedly, for both the week’s gains – largely stemming from Monday’s Moderna vaccine and Fed stimulus headlines – remain largely intact. But Trump seems hell bent on undermining that recovery at every turn.
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