European markets are trading higher this morning and this is on the back of the economic data which was released in China.the two surveys showed that the Chinese factory activity has shown improvement and traders are certainly considering this a good news. The Chinese manufacturing purchasing managers index came above the forecast the of 50.1. The final reading was 50.2. The HSBC PMI has shown some
Songs of life but was still below the level of 50 which separates expansion from contraction. The reading came in at 49.2 whereas the previous reading was at 49.1
Over the weekend, there have been a few headlines over the Greek saga but nothing promising was achieved once again. The prime minister of Greece has called the creditors demand unreasonable and this increased the uncertainty even further. Greece need to make a payment of 300 million on the June 5th to the IMF and than there are another three payments due during this month. The total payment due this is 1.6 billion euro. The chances of achieving such a target or actually paying this bill are very slim.
The Italian May manufacturing PMI came in at 54.6 while the forecast was 53.6. This certainly a good number for the country and shows that weaker euro, lower oil prices and most importantly the ECB QE is making its impact. Italy has put some reform in place and now it is the time for them enjoy the fruit of this. The French PMI manufacturing data also improved and mace in at 49.4 while the forecast for 49.3