Release of a flash PMI indices for August is a key event of the day in Europe. Readings from France and Germany have already been released. French data came more or less in-line with expectations and the market saw almost no reaction to this release. However, equity market indices began to move lower ahead of the German data release (8:30 am BST) and downward move was deepened after data was published. German manufacturing PMI dropped more than expected and put pressure on indices. Services index from Germany beat expectations but also moved lower compared to a previous month.
France
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Manufacturing: 57.3 vs 57.1 expected
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Services: 56.4 vs 56.2 expected
Germany
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Manufacturing: 62.7 vs 65.1 expected
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Services: 61.5 vs 61.0 expected
DE30 started to move lower following the opening of today's cash session in Europe. Downward move was further deepened after the release of lacklustre PMIs from Germany. The near-term support zone to watch or the index can be found at 38.2% retracement of the upward move started on Thursday, August 19 (15,810 pts area). Source: xStation5
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