All rise! Manufacturing PMIs for June have risen across Europe, coming in well ahead of expectations. Whilst some may argue that these Markit surveys are inferior to the US equivalent by the ISM, this is nonetheless a positive for risk markets.
Here’s the chart of the Eurozone PMI, normalised to 50, which turned negative in February 2019, but looked set to return positive in February this year before the virus hit. The key information here is in the two consecutive months of recovery off the April low.
Here you can see the rise in the Eurostoxx 50 this morning.
My fellow Brits should also take confidence in the return positive (above 50, normalised in the chart below) this month. France also recovered the boundary with a reading of 52.1 vs 46 estimated.
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