Eurozone manufacturing PMI remained subdued in december With ECB stimulus in sight.

Eurozone manufacturing PMI remained subdued in December (below a flash estimate of 50.8) at 50.6, but above November's 16-month low of 50.1. "The weakness of factory output, combined with the subdued service sector growth signaled by the flash PMI, suggests the eurozone economy grew by just 0.1% percent in Q4," says Markit. France and Italy's manufacturing sector continued to shrink in December, although Germany's figure was in line with earlier flash estimates at 51.2, as more new orders helped lead a return to growth.

 

Weak eurozone manufacturing, the euro started off the new year at 29-month lows. The currency sank as far as $1.2048, a level not seen since mid-2012, while the dollar notched up a near nine-year peak against a basket of major currencies following its best year since 2005. The euro is now dangerously close to its 2012 trough, and major chart support, at $1.2042. A break there would take it to territory not seen since June 2010.