Struggling German PMI data hits euro, stocks; German yields fall
18/04/2019 at 08:47
LONDON, April 18 (Reuters) - European stocks and the euro were
hit on Thursday after a business survey showed the German
manufacturing sector contracted for the fourth month in a row, adding
to concerns around the sector and pushing investors into the safety of
euro zone government bonds.
Activity in Germany's services sector rose to a seven-month high
in April, a survey showed on Thursday, but investors focused on the
44.5 reading for the manufacturing sector, well below the 50.0 mark
separating growth from contraction even if it was above than the 44.1
reading recorded last month.
The euro tumbled a quarter of a percent to the day's low at
$1.1265 after the data. It was up as much as 0.1 percent at $1.1304
before the data.
The euro-zone stocks index and Germany's DAX fell sharply to
their lowest for the day after the German data, which followed shortly
after weaker-than-expected French manufacturing PMI reading.
At 0735 GMT, the index was down 0.3 percent and Frankfurt
stocks were down 0.2 percent.
German 10-year bond yields, meanwhile, were lower three basis
points at minus 0.5 percent, dropping further off Wednesday's high of
(Reporting by Abhinav Ramnarayan; Editing by Saikat Chatterjee)
((Abhinav.Ramnarayan@thomsonreuters.com; 0044 777 555 1499;))