A few minutes ago the figure for the performance of the manufacturing sector in Germany in October was announced. The preliminary estimate shows a growth and result in higher than expectations of financial analysts. In fact, the German manufacturing PMI index rose in October to 51.8 points from 49.9 points in the previous survey. The market was not very optimistic about the recovery of the sector, many who had suggested a decline to 49.5 points.
In the morning, however, France showed disappointing results, with the PMI manufacturing index in October tumbling to 47.3 points from 48.8 points above. Experts expect a given flash in decline, but only up to 48.5 points. One needs to remember that for this index values above 50 points indicate a phase of economic expansion, while values below 50 point to a scenario of economic contraction.
Returning to Germany, it must be said, however, that the PMI index related to the services was slightly disappointing. In October, there has been a brake to 54.8 points from 55.7 points in the previous survey (revised from 55.4 points). Financial analysts had proposed a reduction of up to 55 index points. At 10 am the preliminary data of the entire Eurozone manufacturing PMI index will also be communicated, which is expected below 50 points.
On the forex, the euro has appreciated the bounce of German manufacture and moved away slightly from the support of short-term price around $1.2620 (intraday low at 1.2613 this morning). After Germany performing well, the euro / dollar ratio rose just above 1.2650. If, however, there should be made a decided drop below 1.26, the next goal set at 1.25 would almost certainly be at hand. Meanwhile, European stock markets move in negative territory, while the spreads are rising.