Wednesday, July 5, 2023

"Eurozone PPI Dumps Into Deflation, PMIs Plunge"

From ZeroHedge:

Eurozone producer prices

Source: Bloomberg

Earlier at ZH: 

Futures Tumble, Yields Stumble After Dire PMIs From China To Europe

One day after a solid start to the new quarter, and after the US took a day off for Independence Day, sentiment has reversed for the worse and US equity futures and European stocks followed Asian shares lower, while bonds declined after the latest China services PMI print from China came well below expectations (53.9 VS 56.2 expected) and raised fresh concerns about the outlook for the global economy. At 7:45am ET, S&P 500 and Nasdaq 100 futures both fell more than 0.5%, indicating US stocks will open lower when trading resumes after the Independence Day holiday. The yield on 2Y Treasuries drifted about five basis points lower to 4.89%. The China-driven weakness was broad based with Japan's NKY down -40bps, China's Shcomp sliding -60bps and the HSI -1.5%. The Stoxx Europe 600 Index slid about 0.6% after soft euro-zone May PPI data, with miners leading the retreat on concern about waning minerals demand from China. Most commodities were lower with copper -70bps, oil -50bps and iron ore -40bps. The Bloomberg dollar index is higher, gold is climbing, and oil is also edging higher.

In premarket trading, United Parcel Service fell as employees moved closer to a strike over pay. Monster Beverage gained more than 2% ahead of its earnings report on Thursday. Here are some other notable premarket movers:...