Eurozone PMI falls but stocks bounce

Tim Wallace
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MARKETS rallied yesterday after a dramatic fall on Tuesday as the possible implications of a Greek referendum were digested by the markets.

In stocks, the DAX rose 2.25 per cent to 5,965.63, the CAC 40 moved up 1.38 per cent to 3,110.59 and the FTSE followed suit, up 1.15 per cent to 5,484.10. In the US, the Dow Jones rose 1.53 per cent to 11,836.04. The VIX went down 5.8 per cent to 32.74.

Investors had rushed to buy in “safe havens” like Germany and the UK, whose bonds rose.

Markit published its Eurozone manufacturing purchasing managers index (PMI) yesterday. The sector is declining at an accelerating rate, falling from 48.5 to 47.1 in October.

Globally, manufacturing PMI registered at 50, the no-change mark.