All the day’s economic and financial news, including a new healthcheck on European companies

Back in the City, excitement is building as the interest rate (yield) on American 10-year government debt threatens to hit 3% for the first time since January 2014.

It’s really quite close now….

2.996 on the bid


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Fred Ducrozet of Swiss bank Pictet is concerned by the slowdown among companies in smaller eurozone nations – and the impact of the stronger euro:

A couple of more worrying signs to be monitored in PMIs though:
1) outside Germany & France, growth slowed to an 18-month low
2) the recent strength of the euro was mentioned as a drag on orders

Here’s the most worrying PMI chart, with Markit mentioning the strength of the euro as a drag, for the first time in months. Still too early for the ECB to be sure, so they’re likely to keep their most dovish options open if things were to get worse.

Euro area composite PMI remained stable at 55.2 in April, above consensus expectations (54.8). Services index (+0.1 point to 55.0) rose marginally, while manufacturing index fell (-0.6 point to 56.0). Supply constraints contributed again to the slowdown in output and orders.

EUR-wide manufacturing PMI declined more than in DE and FR, indicating declines in ES and IT. Still points to strong economic growth.

#PMIs stabilising in April, but decline in new orders and weaker optimism leave potential for further decreases ahead. We expect mfg #PMI to stabilize around 55.0 level over 3-6M horizon. That means #growth should stay robust in the #eurozone.

Continue reading…

Read More Eurozone sticks ‘in lower gear’ as strong euro hits exports – business live

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