Market Overview

PMI Data Mixed For Eurozone

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The euro fell moderately on Tuesday morning after eurozone PMI data revealed that the gap between individual member states was growing. The common currency slipped below $1.36 to trade at $1.3542 at 5:15 GMT.

Reuters reported that the bloc's manufacturing PMI rose to 51.6 in November from 51.3 in October. The figure indicates that the region's economic recovery continued, but individual eurozone countries' data painted a different picture.

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French manufacturing PMI fell to 48.4 from 49.1 in October, a five month low. Spanish data was also gloomy and indicated that the nation's manufacturing sector shrank in November.

Slipping PMI figures have reignited worries that several eurozone nations' recoveries are already starting to thin out. France, the bloc's second largest economy, had particularly worrying data as it was one of only two nations to have a PMI reading below the 50 point mark, indicating a contraction.

The weak PMI scores were offset by an impressive reading from Germany, which showed a jump from 51.7 in October to 52.7 in November. Italy's figures were better than expected as well; the nation's PMI rose to its highest level in 2 ½ years in November with a reading of 51.4.

Data on Monday also showed that eurozone manufacturers were still not able to create any desperately needed new jobs. Instead, the bloc's manufacturers cut jobs for the 22nd consecutive month in November. The eurozone has been struggling with record high unemployment figures since the beginning of the crisis. Although October's unemployment data showed a modest drop in the number of jobless people, most don't expect to see any measurable results in the near future.

Posted-In: News Eurozone Commodities Forex Global Federal Reserve Pre-Market Outlook Markets Best of Benzinga

 

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