Spreadex Market Update
Pound surges following surprise jump in UK manufacturing PMI
Coming in at 53.3 the figure smashed expectations (with analysts forecasting 49.1), and saw a huge rebound from July’s paltry 48.3. In one of those instances of contradictory market nonsense the surprise manufacturing PMI sent the pound sharply higher (to the tune of 1%) against both the dollar and the euro despite the fact that the survey underwent such an increase thanks to sterling’s sustained weakness across August causing a swell in cheaper exports. The pound’s push also saw the FTSE lose its, something that wasn’t helped by a few flashes of red cropping up in the mining sector, causing the index to fall by 0.1% compared to the half a percent surge it saw at the start of the session.
Over in the Eurozone the manufacturing situation wasn’t as perky, the region-wide reading unexpectedly slipping to a 3 month low of 51.7. However, this didn’t matter to the DAX and CAC, with the euro’s slump against the pound leading to a 0.2% and 0.5% rise respectively.
The manufacturing focus continues into this afternoon, as the US prepares itself for its Markit and ISM surveys. The former is forecast to come in at 52.1, while the latter is set to drop from 52.6 to 52.0 month-on-month. For the moment, however, the Dow Jones is just enjoying the weaker dollar, the futures pointing to a 35 points jump after the bell.
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