The European majors find support, with the DAX30 leading the way, while the EUR hits reverse. Manufacturing PMIs countered disappointing German retail sales figures.
It was a busy morning on the economic calendar, with economic data from France, Germany, Italy, Spain, and for the Eurozone in focus.
In January, the Eurozone’s finalized Manufacturing PMI came in at 54.8, an upward revision from a prelim 54.7. In December, the Manufacturing PMI had stood at 55.2.
According to the Markit Survey,
By member state:
At the European open, German retail sales figures for December disappointed, with sales sliding by 9.6%. Economists had forecast a more modest 2.6% decline.
On the employment front, the Eurozone’s unemployment rate held steady at 8.3% in December, which was in line with forecasts.
According to Eurostat,
Through the release of today’s stats, the EUR slid from $1.21292 to a current day low $1.20834.
While the EUR was under pressure, the European majors found support through the early part of the European session.
At the time of writing, the DAX30 was up by 1.07%, with the CAC40 and EuroStoxx600 up by 0.83% and by 0.93% respectively.
The upside for the DAX30 came in spite of the slump in retail sales that will likely continue through January and part of February.
For manufacturers, however, the rise in new export orders was certainly a boost, supporting the European majors.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.