According to analysts at Danske Bank, yesterday, PMI releases in advanced economies cast doubt about the outlook for the global economy.

“Most severe was the slump in the US, where both the manufacturing and service PMIs dropped sharply. While it is not a big surprise that US manufacturing is not immune to the weakening global economic environment (global value chains), the service sector slowdown is more surprising given the strength of the US labour market. The Japanese and German PMIs also surprised on the downside while the French PMI was a rare light of hope. The weakening of the PMIs comes amid the significant uncertainty about trade relations between China and US triggered by the renewed trade dispute between the two countries over the past month. The weak signs from the leading global economies led to a sizeable sell-off in global equity markets.”