Three snapshots for Thursday
The euro zone’s economy took an unexpected turn for the worse in March, hit by a sharp fall in French and German factory activity. The manufacturing purchasing managers indexes for France and Germany were both worse than even the most pessimistic expectations from economists polled by Reuters.
China’s HSBC manufacturing PMI also fell to 48.1, below 50 for a fifth straight month.
“Reflation trade”? Equities have been tracking the 5yr breakeven inflation rate derived from inflation-protected bonds.