US, Eurozone Offer Mixed to Weak Numbers

New York City, New York – (StockNewsDesk) – 11/03/2014 — US markets started trading in a wide range after the major indices hit an all-time high. Several mixed economic indicators have also been reported. European markets saw lower than expected economic indicators as a result of which their stock markets are down by 1% or more. Asian markets were mixed as China, yet again, reported industrial and manufacturing numbers that failed to impress investors.

US Construction Mixed, Manufacturing Weak

More on StockNewDesk:

Institute of Supply Management (ISM) Manufacturing prices came in below expectations at 53.5 compared to expectations of 56.3 and earlier months reading of 59.5. However, ISM Manufacturing Purchasing Managers’ Index (PMI) impressed investors at 59.0. This reading is well above expectations of 56.2 and earlier reading of 56.6. US construction spending disappointed the Street.

US spending on construction declined 0.4% compared to expectations of an increase of 0.7%; last month, the spending declined by 0.8%. Both public and private sectors saw weakness in construction expenditures. Total construction spending dropped to $950.9 billion. Private construction spending slid 0.1%, the lowest level seen in the last year. This is the fourth consecutive decline in private construction spending. Public spending on construction dropped 1.3% while construction of state and local government fell 1.4%. This is the third consecutive time that construction spending has declined.

The US Manufacturing PMI, a prominent metric used to forecast economic growth, fell to its lowest level in three months. The US Manufacturing PMI declined to 55.9 from an earlier month’s reading of 57.5 and “Flash” reading of 56.2; output declined the most. The gauge declined from 59.6 in September to 57.8. According to the “Flash” reading, the indicator was 58.

US, Eurozone Offer Mixed to Weak Numbers

Euro zone Manufacturing Declines

The largest economy of the Euro zone, Germany, reported weak manufacturing numbers. German Manufacturing PMI came in at 51.4 compared to expectations of 51.8 while Italian Manufacturing numbers came in at 49.0 against comparison to 50.7. The French economy, however, showed positive improvement. The manufacturing PMI of France expanded at 48.5 compared to estimates of 47.3. Manufacturing PMI of the Euro zone was slightly down at 50.6 compared to expectations of 50.7.

The S&P 500 has had its best rally in more than a year. The better than expected corporate numbers and economic indicators beating the Street’s expectations have supported this rally. Last week, Japan’s move of introducing fresh stimulus provided the many required boosts to take indices to all-time highs. Nearly 70% of S&P 500 companies have reported results of which 76% have provided profits bettering analysts’ expectations.

Latest on StockNewDesk:


Lost your password?