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Global stocks and oil hit three-month highs on strong China services survey – business live

Global stocks and oil hit three-month highs on strong China services survey – business live thumbnail

Markets ride on wave of economic optimism and shrug off growing unrest in the US, as China services activity hits 10-year-high

On the markets, the FTSE 100 index has extended its gains and is trading more than 1% higher at 6,286, up 65 points. Germany’s Dax is 1.1% ahead at 12,153, France’s CAC 40 has added 1.2% to 4,917 and Italy’s FTSE MiB has posted an even stronger gain of 1.5%,to 19,254.

Spain’s Ibex rose more than 1% in early trading but is now only 0.68% ahead at 7,458 after the latest services and private sector surveys, which confirmed the economy recovered from April’s trough, but remained very weak.

Despite the easing of lockdown measures, economic activity in Spain remained severely curtailed during May. Whilst rising markedly from the extreme readings of April, latest PMI readings remain considerably low and confirm that the Spanish economy will likely experience a contraction in second quarter GDP pushing towards double digits.

Spain’s final PMI readings for May from IHS Markit for the country’s services industries and the private sector as a whole are out. They are slightly better than the flash estimates, but still indicate sharp contractions, as they are far below the 50 mark that divides expansion from contraction.

Markit says the two weakest sectors within services remained hotels and restaurants and transport and storage.

Spain Markit Services PMI May: 27.9 (est 25.0; prev 7.1)
Spain Markit Composite PMI May: 29.2 (est 29.0; prev 9.2)

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