Bad news for Germany. In March according to the preliminary reading, the index manufacturing PMI German of Markit Economics it fell to 44,7 points from 47,6 points in February. A huge drop, the worst in the last 6 and a half years, which analysts did not expect (the consensus was at 48 points). The figure is increasingly moving away from the psychological threshold of 50 points that separates growth from recession.
The preliminary index is also down Services PMI, down to 54,9 points from 55,3 points in February. Analysts had expected 54,8 points.
Finally, the preliminary data of the Composite PMI, which combines the index of services with that of manufacturing, fell to 51,5 points, against 52,8 points in February. The figure is lower than the consensus (52,8 points).
After the German data, le Bags have gone negative: Piazza Affari is the worst, with a drop of 0,93%. Down also Paris (-0,78%), Madrid (-0,61%9 and Frankfurt (-0,67%). Outside the euro area London is also in the red (-0,78%) after the agreement of the EU Council on Brexit.
It also reactseuro. The single currency, which traded at 1,1390 at the opening of the continental markets, slipped to 1,1301. The euro also fell to 125,20 yen (126,04 the exchange rate yesterday evening and this morning) and to 0,8629 pounds (from 0,8677 yesterday evening and 0,8650 this morning).
On the bond it travels upwards spread, which reaches 244.6 basis points (+3%) with a yield of 2,452%.
