European Markets Brace for Key PMI Readings Amid Economic Uncertainty

European and global markets focus on key PMI readings amid growth concerns. The contraction in the euro zone keeps pressure on the ECB to act. The euro struggles, while the U.S. dollar remains strong, driven by its economic performance and political factors. Boeing workers reject contract amid ongoing strike.

European markets on Thursday are bracing for significant preliminary Purchasing Managers' Index (PMI) readings, especially from the euro zone, where diminishing growth prospects are raising alarms among investors and policymakers.

Despite expected contraction in euro zone business activity, pressure mounts on the ECB to expedite rate cuts. ECB President Christine Lagarde stressed cautious decision-making based on data. Predictions indicate rates could dip below 2% by June 2024. This economic apprehension has pressured the euro, poised for its largest monthly drop since April 2022.

In contrast, the U.S. dollar gains strength, driven by robust economic forecasts and political dynamics. Boeing factory workers continue their strike by rejecting a contract, intensifying financial strain on the company. Key developments for the day include flash PMIs from major economies and central bank commentaries.

(With inputs from agencies.)