PMIs are leading indicators for global resources stocks, which have lagged over the past year.
FORBES: Why Resource Investors Can Expect Sunnier Days Ahead
European PMIs also came in a little bit soft and many of those indices are now off 1.5% or so.
FORBES: Google Gets A $1K Target, Builders Tumble, Market Heads Lower
There also was a recent spate of declines in global manufacturing PMIs.
FORBES: Standard: Inverse Copper-Dollar Relationship Breaking Down
For the industrial base metals, however, the bank said there are doubts about the durability of QE-induced gains when global PMIs are weak.
FORBES: Precious, Base Metals All Boosted By Hopes For Further Monetary Easing
But the PMIs by themselves do not justify these fears.
ECONOMIST: The economic slowdown does not herald a double dip. Yet
The fresh day range in the European session stretches from just below the 1.33 figure to 1.3344-ish so far, with regional PMIs the obvious driver for the directional move.
And looking at the recent PMIs from countries like China, and everyone can see that demand is weak and likely to remain a drag on growth into the fourth quarter.
In that case, restocking on the back of a recovery in end-user demand should support a rebound in industrial production and the PMIs in March, if all goes swimmingly well.
The PMIs for large and medium enterprises moderated to 50.6 and 50, respectively, from 51.1 and 50.8 in May, while the PMI for small enterprises recovered to 47.2 from 45.2.
Moreover, the improving global PMIs in recent months likely have contributed to this fact, given U.S. ISM above at 51.5 for the first time in four months giving China a hand.
FORBES: Take That Hard Landing; China Exports Beat Consensus
应用推荐