Major European markets (DBEU) were trading with a negative bias on May 3, 2016. The European markets (HEDJ) failed to build on the slight rise in the Asian indexes in late trade. The United Kingdom’s lackluster PMI (purchasing managers’ index) and Swiss consumer confidence weighed down investors’ sentiments.
Specifically, the SPDR Euro Stoxx 50 ETF (FEZ) was trading 1.4% lower at 9:00 AM EST. The German DAX and French CAC 40 were also trading in a negative trajectory. They fell 1.5% and 1.2%, respectively.
UK PMI below forecast
The Markit UK manufacturing PMI fell to the lowest levels in over two years. It came out at 49.2 for April. This was against the forecast of an above 50 PMI of 51.3. The seasonally adjusted PMI was below 50 for the first time since March 2013. The fall was primarily in the consumer and investment goods sector. The report suggested a softening of both domestic and overseas demand. The manufacturing labor market continued to report job cuts for the fourth successive month.
Turkish index fell
The Turkish Statistical Institute reported that the inflation rate with a rise of 6.6% was below the forecast of 8.1% on a YoY (year-over-year) basis. The month-over-month forecast was in line with forecasts at 0.78%. The Turkish PPI (producer price index) rose by 0.52% on a month-over-month basis. The YoY PPI rose by 2.9%. Among other European data, Swiss consumer confidence for the second quarter was below forecasts at -15.