10:47am: Some good news for US and European manufacturers. The latest round of manufacturing data out overnight has shown that private industry in the euro zone expanded for the first time in more than a year in July. It also a good month for US factories.
The jump in Markit's "flash" Eurozone Composite PMI to 50.4, which marked the first expansion since January, 2012, should hearten European Central Bank policymakers who have promised to do whatever it takes to pull the 17-country euro zone out of the longest recession in the bloc's history.
Markit's "flash" US Manufacturing Purchasing Managers Index rose to 53.2, a four-month high, while output also was at its strongest since March. Increased workloads also encouraged firms to take on workers again after reducing payrolls in June, though the pace of hiring remained sluggish.
"For the US, this shows manufacturing will do a little better now after a bout of weakness earlier this year," said Stephen Stanley, chief economist at Pierpont Securities in Stamford, Connecticut, though he added growth in the sector is "not exactly robust".
But data yesterday showing China's factories lost momentum again this month dulled the good news in Europe and boded ill for companies exposed to the world's second largest economy.
AGO Price at posting:
88.0¢ Sentiment: Hold Disclosure: Held
