Today, we kick off the week with a surprisingly busy start. Mondays are typically quiet, but not this time. The spotlight is on a slew of PMI data from major European economies, and the results so far have been disappointing. We’ve already received PMI readings from France, Germany, the Eurozone, and the UK, and they all came in below expectations, sending shockwaves through the markets. In particular, Germany's manufacturing PMI plunged to 40.3, a deeply concerning figure that signals serious trouble for the Eurozone’s largest economy. As a result, the euro is taking a heavy beating across the board, struggling to find its footing against other major currencies.
Speaking of currencies, the euro isn’t the only one facing headwinds today. The British pound also saw weaker PMI numbers, though it managed to stay just above the critical 50 mark. Despite this, the pound is also losing ground, although not as sharply as the euro. On the other side of the spectrum, we see strength in the Japanese yen, Australian dollar, New Zealand dollar, and the US dollar, all of which are gaining traction amidst the euro's slide.
Turning to commodities, oil is at a crucial juncture, testing key resistance around $72.5 per barrel. It’s a level that could determine the next directional move for crude. If the resistance holds, we might see a fresh bearish wave taking shape. Precious metals, including gold, silver, platinum, and palladium, are all under pressure today, dropping by over 2% as risk appetite shifts away from safe-haven assets.
Finally, let’s look at the indices. It’s a mixed picture as we start the week. US futures are slightly in the green, while European indices like the FTSE and CAC 40 are trading lower. Germany’s DAX is showing a bit more resilience, trading slightly higher. Overall, it’s a tentative start with no clear direction as markets digest the weaker-than-expected PMI data and brace for a busy week ahead.