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Swiss, Norwegian and UK PMI Lead European Recovery

Due to high inflation, high borrowing rates and some capital outflows, the purchasing manager indices (PMIs) for emerging markets remain restricted. India’s HSBC PMI fell down to 50.10.

China is still hampered by the strong yuan, compared to the yen. Consequently ‘s HSBC manufacturing fell even to 49.20.

After the first rise in European car sales in April for many months, European PMIs start to move upwards.

Eurozone Switzerland Norway France Italy Spain Germany UK


The Swiss, Norway, the UK and Germans are in the lead, while, despite improvements, France, Italy and Spain are still lagging This afternoon’s ISM PMI of 49 shows that the U.S. have always problems between May and September.

While inflation fears continue to weaken stocks, the EUR/CHF is improving again, because traders get more confident that there won’t be an ECB rate cut. Hence they pile on the carry trade between EUR or AUD against CHF. On the other side the dollar is weakening against the yen and gold is moving upwards because better European data should be positive for Asia (understand the FX movements).

George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.
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