Major European indices trade in the red.
—Equity Markets—
STOXX Europe 600: -0.3%
Germany’s DAX: -0.6%
U.K.’s FTSE 100: -0.3%
France’s CAC 40: -0.6%
Italy’s FTSE MIB: -0.4%
Spain’s IBEX 35: -0.5%
Eurozone
Flash May PMI readings from the region showed notable weakening with Germany’s Manufacturing PMI (49.9), France’s Manufacturing PMI (48.9), and U.K.’s Services PMI (47.9) coming in below 50.0, reflecting a contraction.
The weak readings are fueling speculation about a potential contraction for Q2.
Flash May Manufacturing PMI 51.4 (expected 51.7; last 52.2) and flash Services PMI 46.4 (expected 47.8; last 47.6).
March Current Account surplus EUR14.9 bln (expected EUR26.3 bln; last EUR25.6 bln).
Q1 Labor Cost Index 3.3% yr/yr (last 3.3%) and March Construction Output 0.78% m/m (last -0.77%)
European Central Bank policymaker Rehn said that a rate hike may be needed to preserve credibility.
Germany
flash May Manufacturing PMI 49.9 (expected 51.0; last 51.4) and flash Services PMI 47.8 (expected 47.1; last 46.9)
U.K.’s flash May Manufacturing PMI 53.7 (expected 52.9; last 53.7) and flash Services PMI 47.9 (expected 51.7; last 52.7)
France
flash May Manufacturing PMI 48.9 (expected 52.1; last 52.8) and flash Services PMI 42.9 (expected 46.6; last 46.5)
Swiss
Q1 Industrial Production -7.1% yr/yr (expected 0.5%; last -0.4%)