Afternoon comment courtesy of Spreadex – 24/07/13

European indices have been edging higher on the back of a stream of strong data including both German and French manufacturing PMI. In another boost to the Euro zone, private industry unexpectedly bounced back to growth this month. The momentum created by this latest batch of positive data is going a long way to support the notion that the Euro zone is on the right track to recovery. 

Looming over global equities, the massive slowdown in Chinese manufacturing remains prominent in investors’ minds. The knock-on effect is already being felt with Japanese exports slowing despite a weaker yen. China’s overall PMI of business conditions fell to 47.7 from June’s final reading of 48.2, a third straight month below the watershed 50 line and the weakest level since August 2012. 

U.S stock-index futures are trading higher in the run-up to the open with strong earnings, including Apple’s, buoying the markets. Apple advanced over 4% in pre-market trading on the back of rising iPhone sales. Of the 156 SPX 500 companies that have reported, 73 percent have exceeded analysts’ forecasts.