The new year has not started brilliantly for global markets, with troubles not only between China and the US, but also in Europe.
What’s more, the continent is not currently showing signs of recovery, according to Schwyzer Kantonalbank CIO Thomas Heller.
Heller noted that Europe’s PMI ‘came in below the prior-month level, dropping 51.4 points to its lowest level in nearly three years.
‘The two major EU countries, Germany and France, remain under pressure,’ he added. ‘France is the second country after Italy to have fallen below the 50-point mark.’
According to Heller, it is still possible that the recent market weakness in Europe will turn out to be temporary and is perhaps simply a response to the gilets jaunes protests in France and the adjustments in the automotive sector.
He added: ‘At the moment, indicators are not showing any trend reversal.’