Global markets showed a modest reaction Thursday as researcher Markit released preliminary November purchasing managers indexes for China, Germany, France and the eurozone.
All are crucial economies right now, as the global economy fights to create even a slight sense of momentum.
The preliminary estimates, called Flash PMIs, reflect data collected between November 12 and 19 and are based on 85% to 90% of total survey responses for the month.
China’s major indexes ended narrowly mixed Thursday, leaving Hong Kong’s Hang Seng index down 3.2% thus far for the week and the Shanghai Composite down a fraction.
HSBC Bank’s Flash China PMI, compiled by Markit, shows manufacturing slowing, with the index at 50 in November, down from October’s 50.4. While factory output and purchases slipped from expansion to contraction and employment declines accelerated, manufacturers did report acceleration in new orders. Growth slowed in both new export orders and backlogs.
In Europe, France showed possibly the strongest response to the data. The Paris Stock Exchange’s benchmark Cac-40 index dropped 0.8% Thursday, leaving it up less than 0.1% so far for the week.
Overall economic activity in France contacted at a slower rate in November, with the Markit Flash PMI number improving to 48.4, from 48.2 in October. Manufacturing (46.5 in November) fared worse than services (48.8). The services sector posted its smallest decline in three months, while manufacturing posted its biggest drop since August.
In Germany, Europe’s largest economy and hardest hit by sanctions against Russia, the economy expanded for a 19th straight month in November, but growth slowed, leaving the PMI index at 52.1, down from October’s 53.9. The country’s services index slowed to 52.1, a 16-month low. Manufacturing marked a 2-month low at 51.4.
Employment continued to show resilience, expanding for a 13 th straight month but at its slowest rate in three months.
Frankfurt’s DAX index dipped in morning trade, but recouped its losses to end ahead 0.1%.
Total eurozone growth slowed to a 16-month low. Manufacturing flickered higher, but not much, while services sector growth marked its slowest expansion since last December.