21 Sep

Why France’s Services PMI Fell in August

WRITTEN BY Sarah Sands

France’s services PMI in August 2017

According to data provided by Markit Economics, the August France services PMI (purchasing managers’ index) stood at 54.9 in August 2017 compared with 56 in July 2017. The figure didn’t meet the initial estimate of 55.5.

Why France’s Services PMI Fell in August

France’s services PMI has been weakening since June 2017. The August services PMI was the lowest reading since January 2017. France’s August services PMI was affected by the following factors:

  • Production volume and output slowed.
  • New business orders and export orders showed slower improvement.
  • Employment also increased at a softer rate in August 2017.

However, France’s manufacturing PMI showed a stronger expansion in August 2017. Improvement in domestic demand in the manufacturing sector was the primary driver of manufacturing PMI in that month.

Rising costs mainly hampered France’s (EWQ) service sector performance in August 2017. Domestic consumption in the service sector fell marginally. However, service firms are still optimistic about the demand outlook of the economy.

Performance of various ETFs in August

The iShares MSCI France ETF (EWQ), which tracks France’s performance, rose 0.8% in August 2017. The iShares MSCI Eurozone ETF (EZU), which tracks the performance of the Eurozone (HEDJ) (FEZ) (IEV), rose 0.5% during the month.

In the next part of this series, we’ll analyze the final services PMI for Germany in August 2017.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

14 Jun

Why Kimberly-Clark Stock May Stop Rising

WRITTEN BY Amit Singh

Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.

172.31.59.107