Markets jump as euro area growth hits four-year high; Euro climbs
Despite the slowdown in France, the euro zone’s private sector is expanding at its fastest rate in four years. Spain's performance was particularly impressing.
Research body Markit just released its Eurozone composite PMI which shows that output expanded more quickly in August.
The easing of the Greek debt crisis appears to have spurred confidence, encouraging companies to hire extra staff to handle an increase in business.
Markit’s Final Eurozone Services Business Activity Index climbed to 54.4, up from July 54.0.
And if you include the latest manufacturing data, the final Eurozone Composite Output Index rose to 54.3, up from July’s 53.9.
EUR/USD climbed to 1.1239, higher 0.11%
Source: The Guardian
However, Britain’s service sector growth has slowed to its slowest rate in 27 months.
The UK services PMI dipped to 55.6 in August, from 57.4, suggesting the recovery weakened last month.
This still shows a solid expansion. But with manufacturing growth also slowing in August, Markit forecasts overall growth of just 0.5% this quarter, down from 0.7% in April-June.
The pound sterling declined vs the dollar with GBP/USD last trading 1.5259, lower 0.27%.
European stocks were widely higher with London's FTSE jumping to 6.193.69, 1.80% higher.
France's CAC 40 added 1.57% while German DAX gained 1.78%.
