Weakening in PMIs, with France dropping well below 50
Adds to current headaches, and puts core bond and ECB pricing in focus
Eurozone PMIs coming in notably weak, with the much-in-focus France down to 48.4 (mkt 50.5) from 51.1, adding decelerating activity to the current headache.
German easing more measured with composite down to 52.8 from 53.8 but still 0.5pp below market. While just a few prints, they do speak to a general trend, amid the financial and credit conditions implications of current France strains (see here), with implications for core bond demand and ECB policy path pricing. EUR sees a bit of slippage out the data to match GBP, though EUR/USD still not losing its current consolidative grip on the 1.12+/- area.