Category: Markets / Finance / March 1, 2013 5:28 PM EST
Kenneth Polcari, Director at O’Neil Securities, weighs in on the latest global manufacturing data, how growth in emerging markets is declining and finally a preview of next week’s economic calendar.
China's February official purchasing managers' index (PMI) came in at 50.1, slightly below a 50.2 Reuters poll consensus and the 50.4 posted in January. Another survey indicated the final HSBC PMI fell to 50.4 after seasonal adjustments from January's two-year high of 52.3, in line with a flash reading.
The European Union's statistics office reported Friday that unemployment in the Eurozone rose to an all-time high in January, with an estimated 19 million people in the bloc out of work.
Eurostat, the statistical office of the European Union, announced on Friday that January's unemployment rate rose to 11.9 percent in the 17 countries sharing the euro, which was up from 11.8 percent in December, with another 201,000 people out of work.
There are multiple central-bank meetings next week in Europe, the United Kingdom, Australia, Canada and Japan, holding separate meetings, and markets will watch for any clues of new policy announcements, or signs that central bankers will take actions later in the year.
China’s manufacturing numbers were slightly above the contraction levels, yet still failed to beat estimates. Out of the four major emerging markets, known as the BRICs, including Brazil, Russia, India and China, India is actually the only one continuing to pick up growth. Now, U.S. corporations saw profits at their operations in China decline for the second year in a row, and because of this, companies are saying they moving some manufacturing out of China and bringing it to the U.S.