European Equities Turn Lower after Euro-Zone PMIs
Most European markets are in the red this Monday afternoon after the latest PMI readings show euro area grows but at the slowest pace in six months. IHS Markit's Euro Zone Flash Composite Purchasing Managers' Index for July dropped to 55.8 from 56.3 in June and the figures show GDP is growing at 0.6 for the quarter – a drop from 0.7 for the second quarter.
The International Monetary Fund has lowered its GDP growth forecast for Britain to 1.7% from 2% in its April report but revised it up for Germany, France, Italy and Spain.
German carmakers' shares slide on the DAX amid allegations of an industrial collusion. EU antitrust officials confirmed at the weekend that they investigating allegations of a cartel among a group of German carmakers including Volkswagen (-2.65%), BMW (-2.5%) and Daimler (-3.7%).
Oil is gaining this Monday rallied on Monday after Saudi Arabia pledged to cut its exports to help ease the stubborn supply glut. The country’s Energy Minister Khalid al-Falih said his country would limit crude oil exports at 6.6 million barrels per day in August, almost 1 million bpd below levels a year ago.
--- Written by Katie Pilbeam, DailyFX