Brazil’s services PMI in April
According to a report by Markit Economics, the final Brazil services PMI weakened sequentially in April. It was 50 in April compared to 50.4 in March. It was the lowest reading since January.
Brazil’s (EWZ) services PMI in April was mostly due to the following factors:
- Production volume and output slowed down in April.
- New business orders and export orders rose at a slower rate.
- Employment in the services sector continued to fall in April.
The overall business sentiment in the services sector was weaker in April. The services sector was stagnant that month due to adverse economic and political conditions. In the previous part of this series, we looked at rising unemployment in April and how it affected the overall economy and the markets.
Market impact in April
Major ETFs such as the iShares MSCI Brazil Capped ETF (EWZ) and the Direxion Daily MSCI Brazil Bull 3X ETF (BRZU), which tracks the performance of Brazil’s equity market, fell significantly in April. The First Trust Brazil AlphaDEX ETF (FBZ) fell 1.7%.
In the next part of this series, we’ll analyze China’s manufacturing PMI in April.