Putin’s accusations and disappointment with the economic data weigh on European stock markets – markets in a minute

Manufacturing PMIs disappoint and punish European stocks

European stocks maintain, at the end of the morning, the pressure with which it started Tuesday’s session. Between earnings season, economic data, and war, investors have a lot to digest.

The German DAX and the French CAC 40 indices were down about 0.9%, while the British FTSE 100 was down 0.5%. The pan-European Stoxx 50 is trading at the waterline while the Portuguese PSI is trading against it, up 0.6%.

The negotiation marker is the Purchasing Managers’ Indexes (PMI). In France, economic activity grew, in February, for the first time since October, as the services PMI rose to 52.8 points, compared to 49.4 in January.

However, the Purchasing Managers’ Index of manufacturing activity in France fell to 47.9 points from 50.5 in January. Only after the 50 point mark is it considered an economic expansion.

In Germany – the eurozone’s largest economy – the story is similar: although the composite PMI advanced (to 51.1 points), industry fell to 46.5 points, penalizing the eurozone-wide PMI, which fell to 48.5 points.

The disappointing numbers indicate the impact of the ECB’s strategy to curb inflation. Besides the economy, investors are also expressing concerns about the development of the war.

Russia’s President, Vladimir Putin, this Tuesday delivered a speech to parliament — its first state of the nation in nearly two years — in which he argued that the country would succeed in achieving its goals in Ukraine and even raised a level of tensions with the United States by suspending the nuclear treaty.

The armed conflict is about to end on Friday, and in anticipation of that, US President Joe Biden made a surprise visit to Ukraine yesterday, during which he provided support to the country.