Market Review - February 2020

February Overview

Data released in February for the end of 2019 showed the eurozone ended the year on a weak note, but forward-looking survey data were more positive with the composite eurozone PMI rising 0.3 points to 51.6 in February. This appears to be off the back of multiple headwinds fading including: Brexit worries, the trade war, the emission scandal and the sharp inventory correction. But, already there are signs that coronavirus is beginning to bite. This includes a fall in the PMI sub-component for export orders and a sudden lengthening of delivery times. These are likely to worsen as infections in Italy and other countries disrupts production, but may be mitigated if eurozone authorities take fiscal action.

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