European shares extend loss on perilous PMI, yield curve ring alarming bell

On Friday, the 22nd of March 2019, the European stocks extended their losses, ending the day near session lows, after weak manufacturing data across the Europe had boorishly buffeted the investors’ sentient

by Sourav D
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European shares extend loss on perilous PMI, yield curve ring alarming bell

On Friday, the 22nd of March 2019, the European stocks extended their losses, ending the day near session lows, after weak manufacturing data across Europe had boorishly buffeted the investors’ sentient and tottered optimism over global growth rebound.

Worries had been splashing further after the release of a dismal factory output data from the US, which posted a 14-month low manufacturing output. Friday’s data delivers a much-contracted manufacturing activity from Germany, which had also renewed the fear of an upcoming recession on world’s fourth largest economy alongside the 19-nation eurozone, while Italy had already been in a technical recession, and France and Britain would more likely to post the same remarks.

Worries got pervasive on Friday (March 22nd) after US factory activity had contracted to a 14-month low and 10-yr bond yield curve had shown an inversion, exaggerating fears that the world’s largest economy might soon be slipping into recession.

Following a day of a series of nerve-wracking manufacturing data across Europe and United States, the pan-European STOXX 600 had dipped for the third straight day in a row and ended the day down by 1.2 percent after surging to a five-month high last week.

Besides, the STOXX 600 also posted a weekly loss of 1.3 percent, its biggest intra-week fall this year. London and Paris bourses drained more than 2 percent, while Madrid and Frankfurt posted a plunge over 1.5 percent. ‘ Addressing to a numerous setback buckling down the German economy, a senior market analyst at Oanda in London, Craig Erlam said, “With numerous headwinds facing the manufacturing sector in Germany – including a slowdown in the automotive sector, Brexit, U.S.-China trade and a global economic slowdown – there’s little to be optimistic about”.

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