Europe grows – PMI shows evidence

Despite the bearish outlook maintained over Euro, it was reiterated that better data is coming out of Europe. PMI data for European Monetary Union was released today at 9 GMT.
Key figures -

• Latest PMI figure is 51.1 compared to 51 prior for the Euro zone, though market expectation was of a better reading.

• It is worth noting that the overall EMU PMI did better, when the reading from Germany faltered at 50.9 against an expectation of 51.5.

• France, Euro zone's second largest economy is not performing well and also behind the economic reform compared to many of its partner. Growth in France dropped faster than anticipated as evident from the latest PMI figure which stands at 47.7, even worse than prior 49.3.

• During the same time industrial data was also released that showed that Italy another large but troubled economy experienced growth, 5.8% YoY and 4.5% mom.

 Improving data and growth divergence will be of greater importance in the coming days as stock and bond performance might diverge in the Euro zone.
For now the effect of the data on Euro should be minimal as other pressing concern like Greece & ECB bond purchase remains the focus.

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