Europe Points Higher After China Trade Mix Up, PMIs Next
Fiona Cincotta June 23, 2020 4:12 PM
After some whipsaw action in the Asian session as the White House’s stance on China was thrown into confusion, the waters have calmed and Europe is pointing higher.
After some whipsaw action in the Asian session as the White House’s stance on China was thrown into confusion, the waters have calmed, and European bourses are pointing to a mildly higher open.
Concerns over a second wave of coronavirus infections remain, although Beijing has seen fewer new cases, lifting sentiment. However, Germany’s recent flare up has seen the R rate push higher again.
PMIs to show the worst has past
Looking ahead, the focus shifts towards purchasing managers index data which will released from the UK, Eurozone and the US providing a decent picture as to how the economic recovery is developing.
PMIs across the board are expected to confirm that April was the trough from the coronavirus economic catastrophe and that the recovery has been gathering pace ever since. Service sector and manufacturing sector PMI readings are expected to reveal that the pace of contraction slowed again in Jun. The data is also expected to show that activity in the sectors remains in contraction, with the service sector, which bore the brunt of the lockdown measures, lagging.
In the UK the manufacturing sector PMI is expected to increase to 45 in June, up from 40.7. The service sector is due to jump from 29 in May to 39.5 this month. A better than expected reading could boost the Pound and keep risk sentiment buoyant, supporting stocks.
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