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Market Pulse: Factory activity slide fuels euro zone gloom

Monday, April 02, 2012 - 03:44

April 2 - A slide in euro zone PMIs fuels fears that core Europe is starting to falter, while analysts express doubts about China's surprisingly robust numbers.

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You're Chris -- give up early gains off to eurozone PMI numbers point to a Foster deeper downturn in the region. Fresh off of an expected for a strong ads affairs and core economies. -- starting to feel what he lets him or what the numbers mean I would talk to senior economist. Chris Williamson gets sealed and Chris how worried are you that the -- is now spreading. To the -- -- Well it and it is a big concern and these -- the pit mines in both -- Jimmy you know below the fifty level two ways that not too severely under that now that mild contractions but. The fact that that that that weakening is a concern a lot of great jobs in the yours and really. We can also see that do -- from outside viewers and he's putting pressure now on the -- infringement actions since. Well -- let's talk a foul. China. Where the official Chinese. PM not at PMI numbers -- into one of this hat which we you -- by the is obviously a bit of an expert. This is a real diversion -- market the PGC's the eurozone PMI UK PMI some enlightenment went to his old CPG's pages BC. At PMI which tells a former player. Now the government sponsored index raised this thing is a one year high said big divergence that. And it seems to be to think the difference is in the seasonality. So there is no reason you visit UCs now team official numbers it always seems to rise in March. So if not the reason then that nasty is weakening trend in China which we sharing. And that's where for some general manufacturers big -- investment goods to China are seeing initial weakening. Our state that will come back to injustice that confessed let's take a quick look the days out the big move us out it's PMI numbers and the big driver across the board today. Eurozone banks the major on the performer on equity markets as worries of -- France and Germany -- -- down by more than 2% on the day while broader indexes. -- just in the red. But it's a different story in the UK office so less than expected PMI numbers steadily hitting thirteen month highs against the basket of currencies. Off to those numbers and oil holds steady the eleven month high. -- on China's PMI numbers balancing out the European disappointment and easing fears of a hard landing in Beijing. As we were just told you about Iraq as we've heard. Many are expressing some skepticism about today's official numbers as Chris was saying. Chris let's get back to you how how encouraging. Or how encouraged are you by the -- and the ourselves. Did these are really encouraging out so pilot may be benefiting from the -- great in the UK speak export market for a very proud of cools. Said that it's -- -- him on that it you very much looks like UK avoided a recession in in this quartet. Traps Wednesday says it to them as will be the real key define aren't that. But there is some element of consent hey we still input costs that rising very shopping now this is it caused him one of the biggest -- -- input cost inflation and also. Output is rising at frustrate and orders which means that that way houses building over the unsold stocks that we need demand to keep. And you -- it -- is when systems is makes up what 75% of you pick -- that. Access to beat -- all right Chris thanks a lot Chris Williamson from market before get a quick check on whether PMI numbers we've styling. Cable looking got to be outside off the closing above its 200 week moving average Friday. At the fan response is also now pushing above the top of its -- weekly Ichimoku Cloud a 160. And that looks to be good technical support of around that level technical and -- now out -- us now putting the target of the of several -- of 16167. That is open up resource which unit of this time every day for market pulse well we look at how what's moving and wind IMAX problems sources.

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Market Pulse: Factory activity slide fuels euro zone gloom

Monday, April 02, 2012 - 03:44