Cheap money era ends, forcing investor strategy shift
Bond yields hit multi-decade highs, signalling the end of cheap money and forcing investors to demand higher returns.
France's final September manufacturing PMI came in at 50.6, beating the preliminary 50.3. The prior reading was 51.1.
A detailed breakdown is still to come.
The manufacturing PMI survey gathers data on output, new orders, employment, supplier delivery times and inventories. A figure above 50 signals expansion from the previous month, while below 50 points to contraction.
As the euro area's second-largest economy, France's PMI serves as an early indicator of industrial activity. Markets will watch whether the final reading confirms that manufacturing remains above the 50 threshold.
The French economy has been sending mixed signals recently. September's flash composite PMI showed private sector activity returning to growth, driven mainly by services, while manufacturing momentum eased.
The standalone market impact is very limited. Services are a stronger driver of the French economy, so the manufacturing figure carries less weight. The broader takeaway will come from how France's data fits with the upcoming German and eurozone manufacturing PMIs, especially on growth and price pressures.
Relevance to markets is moderate. The final headline may not be particularly market-moving, but the underlying details on new orders, output and prices could provide more useful signals for the ECB's outlook.
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