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23 Apr 2013
European markets up despite PMI in Germany and China, Apple earnings on the way
FXstreet.com (Barcelona) - The German DAX 30 (+0.58%), the French CAC 40 (+1.61%), the Italian FTSE MIB (+0.97%), the Spanish IBEX 35 (+1.45%) and the British FTSE 100 (+0.92%) are edging higher on Tuesday despite the upsetting result of German flash PMI in April. The preliminary release of April German manufacturing PMI was expected to stay unchanged at 49.0 but dropped to 47.9 and services PMI eased from 50.9 to 49.2, instead of the slight rise to 51.0 as expected. French Services PMI rose from 41.3 to 44.1, beating the 42.0 expectations, while the manufacturing figure rose from 44.0 to 44.4, above 44.3 consensus.
Disappointing news coming from China also could have hurt sentiment in equity markets as it made to Asian markets. China HSBC manufacturing PMI came in at 50.5 in March, instead of the 51.5 consensus: “This downside miss gives credence to PBoC Governor Zhou weekend remarks about China is now aiming for "lower, sustainable growth". Consensus and the major institutions such as IMF still expect 8+% GDP growth this year, so there’s more work to do to lower expectations. TD at 7¾%”, wrote TD Securities analyst Annette Beacher.
American futures for the S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a somewhat apprehensive NY opening, between flat and -0.15% ahead of one more day in earnings season, with Apple Inc. starring this time. Results will be revealed after the US market closed but market consensus suggests $9.99 per share. TD Securities’ Beacher also had input about US home sales ahead at 14:00 GMT: “March new home sales are expected to recover slightly from their decline in Feb, but we see the risks here biased towards a flat reading and slight disappointment even though the trend in US housing continues to be towards ongoing improvement”.
Disappointing news coming from China also could have hurt sentiment in equity markets as it made to Asian markets. China HSBC manufacturing PMI came in at 50.5 in March, instead of the 51.5 consensus: “This downside miss gives credence to PBoC Governor Zhou weekend remarks about China is now aiming for "lower, sustainable growth". Consensus and the major institutions such as IMF still expect 8+% GDP growth this year, so there’s more work to do to lower expectations. TD at 7¾%”, wrote TD Securities analyst Annette Beacher.
American futures for the S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a somewhat apprehensive NY opening, between flat and -0.15% ahead of one more day in earnings season, with Apple Inc. starring this time. Results will be revealed after the US market closed but market consensus suggests $9.99 per share. TD Securities’ Beacher also had input about US home sales ahead at 14:00 GMT: “March new home sales are expected to recover slightly from their decline in Feb, but we see the risks here biased towards a flat reading and slight disappointment even though the trend in US housing continues to be towards ongoing improvement”.