Manufacturing PMI Weighs on the Pound, While the FTSE100 Finds Relief
It was a relatively quiet morning on the UK economic calendar. The UK’s finalized manufacturing PMI for March was in focus.
In March, the UK Manufacturing PMI fell from 58.0 to a 13-month low of 55.2, which was down from a prelim 55.5.
According to the March survey,
- New orders increased at the weakest pace in the current 14-month run of increases.
- Export orders contracted for the sixth time in seven months, with domestic orders also softer.
- Firms attributed weaker new orders to rising geopolitical tensions, ongoing difficulties following Brexit, and loss of sales due to supply chain constraints.
- Input prices increased for a twenty-eighth consecutive month, with the rate of increase hitting a three-month high.
- Average selling prices also increased at the fastest pace in three months.
- Despite softer demand, employment expanded for the fifteenth consecutive month.
- Concerns over rising geopolitical tensions, inflationary pressures, and labor shortages left positive sentiment at a 14-month low.
Ahead of today’s stats, the Pound rose to a pre-stat and current-day high of $1.31513 before falling to a pre-stat and current-day low of $1.31124.
In response to today’s PMI, the Pound fell to a post-stat low of $1.31181 before rising to a post-stat high of $1.31307.
At the time of writing, the Pound was down by 0.04% to $1.31289. Despite today’s PMI, market sentiment towards BoE monetary policy remained Pound positive.
While the PMI tested Pound support, it has been a bullish start for the FTSE100, with a pullback in crude oil prices providing riskier assets with early support.
At the time of writing, the FTSE100 was up by 0.38% to 7,544.41, while Brent Crude was down by 0.78%.
Mining stocks were on the move this morning, with Rio Tinto (+1.73%), Anglo American (+1.92%), and Glencore (+1.19%) making solid gains.