EUROZONE BUSINESSES GROWTH IS WORSE THAN EXPECTED IN MARCH as factory activity contracted at the “fastest” pace in nearly six years, suffered by a substantial drop in demand. The manufacturing PMI sank to 47.6 from February’s 49.3. In addition, the new orders index dropped to 44.5 from 44.6, a level not seen since the end of 2012. Germany manufacturing further weakened on unresolved trade disputes and exacerbating slowdown in Europe. “The German manufacturing recession is getting worse,” said Andrew Kenningham at Capital Economics. IHS Markit stated, "The first-quarter GDP grew by 0.2 percent, below the 0.3 percent prediction." This supports the ECB’s decision on pushing out its rate hike until 2020 at the earliest to help revive the economy. The UK 10-year Gilt declined basis points. FTSE 100, -2.00%, STOXX Europe 600 -1.10%, CAC 40 -1.83%, German DAX -1.20%.
GERMAN POLITICIANS UNCERTAIN ABOUT EFFICACY OF THE DEUTSCHE BANK AND COMMERZBANK merger. Both banks have been struggling to stay
“afloat” with many layoffs occurring, meanwhile, their shares have lost
approximately 80% in market share value. “It is not clear how putting two sick banks together will result in a healthy one,” stated Cansel Kiziltepe, a Social Democrat lawmaker.
German Chancellor, Merkel has not commented on whether she approves of the merger or not. Among European high-grade bonds showing a concurrence of top price gains at appreciable volumes traded,
Barclays PLC (USD) 5.2% 5/12/2026 made some analysts' 'Conviction Buy' lists. (See the chart for
Barclays PLC bonds below).
Niral Mehta (
nmehta@advantagedata.com).
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