Stock markets today, March 1. Positive Europe, Bancorp sinks on Wall Street. New signs of slowdown from China

Slowdown in industrial activity in China

China's industrial activity remains sluggish in February: for the fifth month in a row, the Purchasing Managers' Index (PMI) contracted to 49.1, down from January (49.2) and in line with analysts' expectations. The data continues to reflect weak internal and external demand, contraction, and still uncertain confidence in an economy that is struggling to restart after the Covid-19 pandemic, amid unprecedented disruptions linked to the real estate sector and high youth unemployment rates. Data released by the Office for National Statistics, on the other hand, reached positive territory (over 50) only twice last year, most recently in September. In recent months, the authorities have announced targeted measures, as well as a large issuance of government bonds to help infrastructure spending and revive economic activity, but without achieving the desired results.

While the Lunar New Year, the long-awaited week-long national holiday, fell in February this year, which contributed to the slowdown in production activities. China's non-manufacturing PMI, a leading indicator of services, remained positive at 51.4, picking up the pace from the 50.7% in January and the 50.6 that analysts had expected. Those released today, along with the Caixin magazine-sponsored Manufacturing PMI (50.9 in February from 50.8 and estimates at 50.6), are the latest macroeconomic data in light of the opening of the “Two Sessions,” the annual event of China’s parliament at which it will have to unveil its economic targets for the year 2024 next week.