Analysts at Danske Bank points out that markets are set for the big PMI day today, with releases out in the US, euro area and Scandi region alike and should give some hints as to whether Danske Bank’s call that the business cycle is near a peak is starting to play out.
“In the US, the flash Markit PMI manufacturing for April is due. In March, PMI manufacturing declined, although it is still at a level that suggests increased activity. We expect manufacturing PMI to be unchanged at 53.3.”
“Similarly, in the euro area, PMIs are set for release across regions. We believe these will remain strong in April but with a small downward correction with regard to services. Business and economic sentiment still seem optimistic - however, the final services PMIs were corrected significantly downwards in the March figures, which indicates some weakness towards the end of the month. This weakness could transition into lower service PMIs for April. Additionally, the recent months, with upside surprises in PMIs, make a coming moderation increasingly likely.”
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