Here we analyze a selection of third-party news articles—both those we agree and disagree with.
Please note: Though we make every effort to source articles from freely available sites, we will also regularly include articles on sites that have limited content for non-subscribers. Doing so is increasingly unavoidable, as more and more financial media is published behind paywalls.
MarketMinder’s View: Eurozone growth was a bit broader than the initial “flash” purchasing managers’ index (PMI) estimates showed for January. “The final composite output index rose to 51.3 in January from 50.9 in December. According to flash estimate, the index score was unchanged at 50.9. The private sector expansion was again driven by the services economy during January, although growth moderated from December. Meanwhile, manufacturing output continued to fall, extending the current sequence of contraction to a full year. The services Purchasing Managers’ Index dropped to 52.5 from 52.8 in December. The flash estimate was 52.2.” We wouldn’t quibble too much with slight revisions as figures over 50 indicate expansion. Also, as this article notes, growth was broad-based geographically. “All nations covered by composite PMI data recorded an expansion in private sector output.” Another positive tidbit, as IHS Markit notes: “Whilst modest, [new business] growth was the best recorded in seven months.” Manufacturing may still be contractionary, but it, too, has been improving in recent months. More importantly, eurozone services continues chugging ahead, pulling the economy along. That reality is better than widespread dour expectations—bullish for stocks!