European stocks mixed as recovery begins

Equity markets in the eurozone are a mixed bag today as the region shows some signs of improvement.

The latest manufacturing and services purchasing managers index for the eurozone came in better-than-expected – although some countries are still struggling – at 53.9, while the services survey came in at 51.9. Both are an increase on December’s figures.

In recent weeks France has been falling, although today’s figures suggest it is on the mend. Its manufacturing and services reports came in at 48.8 and 48.6 respectively, which is still in contraction territory but, again, an improvement on December’s figures.

Spanish equities are performing relatively well as the country has exited the international bailout programme. Although €100 billion was allocated to shore up the Spanish banking sector, just over €41 billion was required. Spanish unemployment remains stubbornly high, however, which could come back to haunt them.

The German index has managed to hold the 9700 level, as Brenda Kelly stated. It is still well above the 200-day moving average, so we could see dealers buying on the dip.

Germany 30 chart

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