Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

StockBeat: ECB Cushions Hammer Blow from PMIs

Stock Markets Apr 23, 2020 05:19AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
ES35
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IT40
-0.26%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BBVA
+0.83%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CABK
+0.06%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SABE
+0.61%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ISP
+0.58%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith 

Investing.com -- Europe’s stock markets dealt better than might have been expected with another crushingly negative set of business surveys on Thursday, trading roughly mixed thanks to fresh support measures from both government and – more importantly – the European Central Bank.

Italian, Spanish and Portuguese banks were among the biggest winners after the ECB tweaked its rules in an emergency virtual meeting on Wednesday, to ensure that it can still lend to banks even if their sovereign government’s credit rating is downgraded to junk. That prospect most immediately affects Italy in particular, after Prime Minister Giuseppe Conti unveiled plans for 50 billion euros more in spending this year.

BBVA (MC:BBVA) stock was up 4.4%, while Bankia (MC:BKIA) stock, Caixabank  (MC:CABK) stock and Sabadell (MC:SABE) stock were all up by over 2%. Italian heavyweights Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) made smaller gains of 1% each, the latter suffering from a barrage of price target reductions after making a 900 million-euro ($970 million) provision for bad loans on Tuesday. The benchmark Stoxx 600 was up 0.2% by 5:20 AM ET (0920 GMT), with the Italian FTSE MIB and the Spanish IBEX 35 outperforming.

Purchasing manager surveys for April, released on Thursday, made clear how badly such provisions will be needed. Forecasts were for the worst European PMIs ever – and the actual numbers were worse than the forecasts across the board, with services hit hardest of all.

The eurozone composite PMI fell to 13.5 from 29.7, while the services PMI fell to 11.7 from 26.4.

“The eurozone economy didn’t just fall flat on its face at the start of Q2, it head-butted the pavement,” said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics.

Vistesen argued that the underlying reality may not be as bad as the numbers suggest, in that employment subsidy schemes across the region mean that the jobless rolls won’t rise as fast as the numbers suggest. On the downside, he argued, respondents’ were even more gloomy about the outlook for the next 12 months than they were in March: that’s at odds with the sharp relief rally seen in European stocks in the last month.

“The success of governments’ efforts to re-open economies in the next two-to-three months will determine which of the stories that are right,” Vistesen said.

German Chancellor Angela Merkel, whose government has had arguably the best record in containing the outbreak in Europe, told the Bundestag on Thursday that ““we are not living in the final phase of the pandemic, but still at the beginning,” while Spain, which has been at the other end of the pain scale, extended its lockdown until May 9th on Wednesday.

StockBeat: ECB Cushions Hammer Blow from PMIs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
bert prince
bert prince Apr 23, 2020 6:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
europe is just 2 or 3 weeks ahead of usa.Do not expect positive surprises on us pmi...
Bryan Lee
Bryan Lee Apr 23, 2020 5:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Time for Europe to get back to the dark ages
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email