European indexes suffer losses
Major European markets (DBEU) continued the downward spiral on May 4, 2016. The European markets (HEDJ) were impacted by the Eurozone composite PMI (purchasing managers’ index) release and the United Kingdom’s construction PMI.
Specifically, the SPDR Euro Stoxx 50 ETF (FEZ) was trading 0.98% lower at 9:00 AM EST. The German DAX and French CAC 40 were also trading in a negative trajectory. They fell 0.69% and 0.71%, respectively.
Among other major European indexes (IEV), the crude-related Russian economy (RSX) was among the major losers for the day despite the late bounce back in crude oil prices. Crude futures (USO) were up 1.1% at 9:00 AM EST. The Russian MICEX fell by 2.3%.
Eurozone’s PMI is in line with forecasts
The Markit Eurozone composite PMI remained in line with forecasts in April. It came out at 53.0. The services business activity index was at 53.1. The four major Eurozone economies reported an expansion in April. For Spain, Italy, and France, the PMI was above the previous month’s figures at 55.2, 53.1, and 50.2, respectively. The German PMI was also modest at 53.6. It was slightly below the forecasts and the previous month’s figures. The German services PMI came out at 54.5. It was slightly below the forecast of 54.6.
UK construction PMI disappoints
The Markit UK construction PMI for April indicated an easing in the construction output growth to a three-year low. The construction PMI came out at 52.0—compared to forecasts of over 54. The report suggested a stagnation in new business volumes. This was due to multiple factors like heightened uncertainty in the global scenario and a general unwillingness to commit to new projects. The staffing in the construction sector continued to rise.