Prior 49.6Composite PMI 48.8 vs 48.3 prelimPrior 49.9The readings might be revised higher in the final report but they are still much softer than in February. A sharper decline in new business weighed on business activity with the war in the Middle East also reportedly hit order books. As such, it is once again demand-side weakness that is plaguing French services activity as we wrap up Q1.Besides that, the most prominent impact of the US-Iran conflict was on prices as input cost inflation rose to a 20-month high. Ouch.HCOB notes that:”The resolution of the budget deadlock earlier this year has failed to provide France’s economy with a springboard into higher growth during the first quarter, according to the latest PMI numbers. That said, the local elections in March provided yet another political event for businesses to contend with, so we may need to wait until April data to make concrete conclusions. The outbreak of war in the Middle East is also being felt in Europe, with survey respondents reporting a hit to demand due to the conflict. “However, prices were where the Middle East war showed up most starkly in the March PMI figures. Input price inflation accelerated sharply, hitting its highest level since July 2024 as the oil price shock drove fuel costs up across France. “Much uncertainty lies ahead, a condition which French businesses have become rather accustomed to in recent years given the domestic political environment. Uncertainty is bad for growth, and the inflation impulse stemming from the war raises the risk of stagflation in France.” This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The latest PMI readings are a red flag for traders: softer business activity signals potential economic slowdown. With the Composite PMI at 48.8, down from 49.6, this indicates contraction in the sector, which could lead to reduced consumer spending and lower corporate earnings. The geopolitical tensions in the Middle East are adding to the uncertainty, impacting order books and overall market sentiment. Traders should keep an eye on how this affects related assets, particularly in the forex market where currencies tied to economic performance may weaken. If the final PMI report revises these numbers lower, we could see further volatility in equities and commodities. Here’s the thing: while some might brush this off as a temporary dip, the trend suggests a more cautious approach is warranted. Watch for key support levels in major indices; if they break, it could trigger a wave of selling. Keep an eye on the upcoming economic indicators and how they correlate with these PMI figures to gauge market direction. 📮 Takeaway Monitor the Composite PMI closely; a further decline could signal broader economic issues, impacting equities and forex markets significantly.

Prior 53.5Final Composite PMI 51.9 vs 51.9 prelimPrior 53.2Key findings:New business falls for first time since last September Output price inflation eases despite spike in cost pressuresComment:Phil Smith, Economics Associate Director at S&P Global Market Intelligence: “The war in the Middle East has put the brakes on growth in the service sector. Higher prices at the fuel pumps and heightened levels of uncertainty have weighed on spending and caused business activity growth to slow sharply to its weakest for seven months in March. “Inflows of new business have fallen for the first time since last September in a clear sign of the Middle East war’s immediate impact on demand, whilst a notable drop in business expectations underlines how higher energy prices, supply chain disruption and generally elevated levels of uncertainty are set to stifle growth in the year ahead. “Despite sharply rising costs, service providers haven’t been able to push through greater price increases to customers, with the weaker demand environment leading to the slowest rate of services price inflation for three months in March. The lack of pricing power in the service sector is important from a monetary policy perspective, as it limits the amount of upward pressure on core inflation, a measure that the ECB will be closely watching when considering interest rate increases.” This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source

Prior 51.9Composite PMI 50.7 vs 50.5 prelimPrior 51.9The headline estimate is a 10-month low while the composite reading is a 9-month low. All of this now points to the notion that the euro area economic recovery from last year is taking an abrupt knock. That as new orders/business fall hard amid elevated uncertainty from the Middle East conflict.Besides that, the surge in input price inflation was the most notable thing in the report. Input prices jumped to a 34-month high in March. That led to the strongest overall increase in goods and services prices across the region since February 2024.HCOB notes that:”March’s PMI indicates that the eurozone economy has already been hit hard by the war in the Middle East. The encouraging signs of growth seen earlier in the year have been eradicated thanks to surging energy prices, choked supply chains, financial market volatility and a renewed downturn in demand. The accompanying surge in prices raises the unwelcome spectre of stagflation, or worse, in the near-term. “The near-stalling of growth in March drags the PMI’s signal for first quarter GDP growth down to 0.2%. More worrying is that there are clear risks of the economy contracting in the second quarter unless there is a swift resolution to the conflict, and even then we will likely see damaging energy market repercussions extending into the coming months. “New orders inflows have fallen in March for the first time since last July, though the squeeze on spending from the rising cost of living is likely only just beginning. Widespread reports of supply bottlenecks arising from the war raise the risk of growth being constrained further and pressure on prices intensifying. “Higher prices have also raised the prospect of interest rate hikes, with the European Central Bank taking a hawkish tilt to prevent these near-term inflationary pressures from becoming engrained. “Hence business optimism about the outlook has slumped, which has already hit hiring but will also dampen business investment. “In this environment, it is likely that we will see increasing numbers of economic forecasters also revise their growth expectations lower for 2026 and maybe even pencil in a contraction of GDP in the coming quarter.” This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The recent PMI data shows a sharp decline, signaling potential economic weakness in the eurozone. With the composite PMI dropping to a 9-month low, traders should be wary of how this impacts the euro and related assets. A weakening economy could lead to dovish monetary policy from the ECB, which might further pressure the euro against the dollar. If the euro breaks below key support levels, it could trigger a wave of selling, especially among retail traders looking to capitalize on bearish trends. Keep an eye on the 50.0 mark; a sustained drop below could indicate a deeper recessionary trend. Additionally, this data could ripple into the forex markets, affecting pairs like EUR/USD and EUR/GBP, as well as commodities priced in euros. Watch for any ECB commentary in the coming days that might hint at policy shifts in response to this data. 📮 Takeaway Monitor the euro closely; a drop below 50.0 in PMI could trigger significant selling pressure in EUR/USD and related pairs.

China gold reserves at the end of March 2026: 74.38 million troy ouncesIn February 2026: 74.22 million troy ouncesChina gold reserves value at the end of March 2026: $342.76 billionIn February 2026: $387.59 billionIn terms of value, China’s reserves in gold declined on the month but that is to be expected amid the rout in precious metals since the US-Iran conflict started. That as broader market sentiment deteriorated and we see liquidations come about.But in terms of reserves quantity, that continues to see an uptick with this being the 17th straight month of buying by Beijing. It really doesn’t come as a surprise with China being arguably the biggest buyer out there for a while now.In any case, I’ve already said this last month but it is worth repeating that:”Going back to China’s holdings, do be reminded that the numbers above are what is “officially” being reported. It has been speculated for the longest of time already that Beijing has been buying way more gold than what is being advertised here… independent estimates from the likes of the World Gold Council suggest that China’s actual holdings may be double what they are reporting.” This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight China’s gold reserves just dropped in value, and here’s why that matters: The decline from $387.59 billion in February to $342.76 billion in March signals a potential shift in China’s strategy regarding gold accumulation. For traders, this could indicate a broader trend of reduced demand or a pivot towards other assets. With reserves now at 74.38 million troy ounces, the market might interpret this as a weakening of China’s gold-backed financial stability, which could ripple through commodities and forex markets. If China continues to offload or slow its gold purchases, we might see pressure on gold prices, impacting correlated assets like gold ETFs or mining stocks. Watch for key technical levels around $1,800 per ounce for gold, as a breach could trigger further selling pressure. On the flip side, if this decline is temporary and China ramps up purchases again, it could create a buying opportunity for savvy traders. Keep an eye on upcoming economic indicators from China that could influence gold demand, particularly any shifts in monetary policy or economic growth forecasts. 📮 Takeaway Monitor gold prices around $1,800 per ounce and watch for China’s economic indicators to gauge future gold demand.

Prior -3.1That’s the softest reading since April 2025 as euro area investor sentiment plunges amid the US-Iran conflict. The surge higher in energy prices and supply chain disruptions are two major factors in dragging down investor morale with Sentix noting that “investors realise that recession is once again on the table”.Adding that “the attacks on energy infrastructure and disruptions to shipping in the Persian Gulf are weighing even more heavily on people’s minds than they did four weeks ago”.Besides that, the expectations index also dropped drastically to -15.5 from 3.5 last month. Meanwhile, the current situation index also fell to -22.8 from -9.5 in March. All of that are also the lowest readings since April last year. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight Investor sentiment in the euro area just hit a low not seen since April 2025, and here’s why that matters: rising energy prices and ongoing supply chain issues are weighing heavily on market confidence. With the US-Iran conflict adding to the uncertainty, traders should be cautious. A drop in sentiment often precedes economic slowdowns, which could lead to volatility in related markets, particularly in commodities like oil and natural gas. If energy prices continue to rise, we might see a ripple effect impacting inflation rates and central bank policies across Europe. Keep an eye on the Sentix index as it can be a leading indicator for broader market trends. On the flip side, if the situation stabilizes, there could be a rebound in sentiment, presenting buying opportunities in oversold sectors. Watch for key resistance levels in energy stocks and related ETFs, as a break above those could signal a shift in momentum. 📮 Takeaway Monitor the Sentix index closely; a continued decline could signal deeper economic issues, impacting energy prices and related markets.

Prior 53.9Final Composite PMI 50.3 vs 51.0 prelimPrior 53.7Key findings:Output growth eases amid renewed decline in new work Input price inflation highest since April 2025 due to surge in fuel costs Business optimism falls to its lowest for nine monthsComment:Tim Moore, Economics Director at S&P Global Market Intelligence, said: “UK service providers experienced a marked slowdown in output growth in March as the war in the Middle East encouraged greater risk aversion among clients and postponed investment decisions. Cutbacks to business and consumer spending meant that the rate of business activity expansion was the weakest seen since April 2025. “Stagflation risks appear to have increased, with the final Services PMI data signalling slower growth and higher cost pressures than the earlier ‘flash’ estimates based on data compiled up to 20th March. Overall input cost inflation has accelerated sharply since February and was the strongest for 11 months, which was overwhelmingly linked to rising fuel and transportation bills. Many firms also noted that suppliers had sought to pass on higher prices paid for energy, raw materials and shipping. “Rising global economic uncertainty due to the war in the Middle East contributed to a further decline in business optimism across the UK service economy. Confidence levels have fallen sharply after hitting a 15-month high in January. Service providers widely commented on fragile domestic economic conditions and concerns about the impact of rising inflation and higher borrowing costs on client demand over the year ahead.” This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source 💡 DMK Insight The drop in the Composite PMI to 50.3 signals a potential slowdown in UK economic activity, and here’s why that matters: A PMI below 50 indicates contraction, which could lead to reduced consumer spending and lower corporate earnings. With input price inflation hitting its highest since April 2025, driven by rising fuel costs, businesses might face tighter margins, impacting their investment strategies. This could trigger a bearish sentiment in the forex market, particularly for the GBP, as traders reassess the Bank of England’s monetary policy stance. If business optimism has indeed fallen to a nine-month low, expect volatility in related assets like UK equities and commodities, especially oil, which is directly tied to fuel costs. Keep an eye on the 50 level in the PMI as a psychological barrier; a sustained drop below this could lead to further selling pressure in the GBP. Additionally, monitor the upcoming inflation reports and central bank comments for clues on future interest rate adjustments. The real story is how these economic indicators could shift market sentiment in the short term, particularly for day traders looking to capitalize on volatility. 📮 Takeaway Watch the GBP closely; if the PMI stays below 50, expect potential bearish moves, especially in GBP/USD and related assets.