Some softer tones ahead of the PMI releases
- Eurostoxx -1.0%
- Germany DAX -1.2%
- France CAC 40 -1.2%
- UK FTSE -0.8%
- Spain IBEX -1.4%
It is going to be interesting to see how investors will digest the PMI releases in the next hour. The headline figures are going to show an improvement relative to April, but these will largely capture the comparison in business activity - not the magnitude of the improvement.
If you will, you can think of the PMI readings as a shift in the balance of firms expressing a more positive business situation in May (where restrictions are eased slightly) compared to April (where restrictions are firmly in place).
That does not take away from the fact that economic conditions in May still remains highly subdued, despite the figures likely to show a "doubling" in business activity.
Let's see how the market will take all of that in during the session.
