Eurozone PMIs Have Never Been Worse. That Is Why Bank of America Is Bullish on Eurozone Stocks.

Steve Goldstein BAC INFO IHS Markit Bank of America Banking Banking/Credit Financial Services Integrated Banks North America United States Economic Performance/Indicators Euro Zone/Currency Economic News Purchasing Managers Index BAC I/BAN I/BNK I/XFFX INFO M/FCL N/DJN N/EMU N/GENI N/IEI N/IEJ N/IEN N/WER R/NME R/US Barrons.com Barrons Blogs Wires Fortune 500 CODES_REVIEWED Europe Markets US author Steve Goldstein author|Steve Goldstein topicid 185 name Steve Goldstein extractedtext Steve Goldstein rank 1 codetype author code steve_goldstein nameformat surname_first author Steve Goldstein id Steve Goldstein co ncnbco co|ncnbco country US symbol BAC displayname Bank of America why about extractedtext Bank of America source FACTIVA occurs true seoname bank_of_america orgtype public countrycode US relevancerange medium chartingsymbol STOCK/US/XNYS/BAC fcode ncnbco fullextractedtext Bank of America ticker BAC confidence 100 subcat com relevance 53 significance prominent name Bank of America confidencerange high exchange NYSE exchangeisocode XNYS codetype co code ncnbco onlinesignificance prominent co markit co|markit country US symbol INFO displayname IHS Markit why occur extractedtext IHS Markit source FACTIVA seoname ihs_markit countrycode US relevancerange medium chartingsymbol STOCK/US/XNYS/INFO fcode markit fullextractedtext IHS Markit ticker INFO confidence 100 subcat com relevance 51 significance passing name IHS Markit confidencerange high exchange NYSE exchangeisocode XNYS codetype co code markit onlinesignificance passing-mention company INFO company|INFO name IHS Markit significance PASSING-MENTION company BAC company|BAC name Bank of America significance PROMINENT djn INFO djn|INFO significance passing name INFO why occur source FACTIVA fcode INFO codetype djn code info onlinesignificance passing-mention djn BAC djn|BAC significance prominent name BAC why about source FACTIVA occurs true fcode BAC codetype djn code bac onlinesignificance prominent djn I/BNK djn|I/BNK name I/BNK why lineage source FACTIVA fcode I/BNK codetype djn code i_bnk djn M/FCL djn|M/FCL name M/FCL why lineage source FACTIVA fcode M/FCL codetype djn code m_fcl djn I/BAN djn|I/BAN name I/BAN why association source FACTIVA fcode I/BAN codetype djn code i_ban djn N/EMU djn|N/EMU significance prominent name N/EMU why about source FACTIVA fcode N/EMU codetype djn code n_emu onlinesignificance prominent djn N/IEI djn|N/IEI name N/IEI why lineage source FACTIVA fcode N/IEI codetype djn code n_iei djn N/IEJ djn|N/IEJ name N/IEJ why lineage source FACTIVA fcode N/IEJ codetype djn code n_iej djn N/GENI djn|N/GENI name N/GENI why lineage source FACTIVA fcode N/GENI codetype djn code n_geni djn N/IEN djn|N/IEN name N/IEN why lineage source FACTIVA fcode N/IEN codetype djn code n_ien djn R/US djn|R/US significance prominent name R/US why about source FACTIVA fcode R/US codetype djn code r_us onlinesignificance prominent djn R/NME djn|R/NME name R/NME why lineage source FACTIVA fcode R/NME codetype djn code r_nme djn I/XFFX djn|I/XFFX significance prominent name I/XFFX why about source FACTIVA fcode I/XFFX codetype djn code i_xffx onlinesignificance prominent djn N/DJN djn|N/DJN codetype djn value N/DJN source DJN-CONTROL status modified inactivebydefault true name N/DJN code n_djn djn N/WER djn|N/WER codetype djn value N/WER source DJN-CONTROL status modified inactivebydefault true name N/WER code n_wer first_publish_headline Eurozone PMIs Have Never Been Worse. That Is Why Bank of America Is Bullish on Eurozone Stocks. first_publish_headline|Eurozone PMIs Have Never Been Worse. That Is Why Bank of America Is Bullish on Eurozone Stocks. flow NWREGULAR flow|NWREGULAR codetype FLOW value NWREGULAR source MANUAL status modified name Wires code NWREGULAR flow Barrons.com flow|Barrons.com codetype FLOW value Barrons.com source MANUAL status modified name Barrons.com code online name Online title Product code Barrons.com flow Barrons Blogs flow|Barrons Blogs codetype FLOW value Barrons Blogs title Product source MANUAL status modified name Barrons Blogs code Barrons_Blogs headline Eurozone PMIs Have Never Been Worse. That Is Why Bank of America Is Bullish on Eurozone Stocks. headline|Eurozone PMIs Have Never Been Worse. That Is Why Bank of America Is Bullish on Eurozone Stocks. idx xf500 idx|xf500 significance prominent name Fortune 500 why about source FACTIVA fcode xf500 codetype idx code xf500 onlinesignificance prominent in i814 in|i814 name Banking why lineage source FACTIVA fcode i814 codetype in code i814 in ibnk in|ibnk name Banking/Credit why lineage source FACTIVA fcode ibnk codetype in code ibnk in ifinal in|ifinal name Financial Services why lineage source FACTIVA fcode ifinal codetype in code ifinal in iibnk in|iibnk name Integrated Banks why association source FACTIVA fcode iibnk codetype in code iibnk inset inset-1 inset|inset-1 responsive layout inline media media-16 media|media-16 responsive layout wrap media media-1 media|media-1 media media-2 media|media-2 media media-3 media|media-3 media media-4 media|media-4 media media-5 media|media-5 media media-6 media|media-6 media media-7 media|media-7 media media-8 media|media-8 media media-9 media|media-9 media media-10 media|media-10 media media-11 media|media-11 media media-12 media|media-12 media media-13 media|media-13 media media-14 media|media-14 media media-15 media|media-15 ns epmi ns|epmi significance prominent name Purchasing Managers Index why about source FACTIVA fcode epmi codetype ns code epmi onlinesignificance prominent ns e52 ns|e52 significance prominent name Euro Zone/Currency why about source FACTIVA fcode e52 codetype ns code e52 onlinesignificance prominent ns e11 ns|e11 name Economic Performance/Indicators why lineage source FACTIVA fcode e11 codetype ns code e11 ns ecat ns|ecat name Economic News why lineage source FACTIVA fcode ecat codetype ns code ecat nwchain SB503209352039206146753045863011127972752841 nwchain|SB503209352039206146753045863011127972752841 re usa re|usa significance prominent name United States why about source FACTIVA subcat cntry fcode usa codetype re code usa onlinesignificance prominent re namz re|namz name North America why lineage source FACTIVA subcat snr fcode namz codetype re code namz relay SYND relay|SYND name Syndication source EXPANDER value SYND codetype RELAY code synd status modified statistic CODES_REVIEWED statistic|CODES_REVIEWED name CODES_REVIEWED value CODES_REVIEWED codetype STATISTIC code CODES_REVIEWED subject BARMKTS subject|BARMKTS ruleid BARMKTS codetype SUBJECT value BARMKTS selectable true canbedisplaysubject true name Markets title Markets status modified code BARMKTS subject BAREUROPE subject|BAREUROPE ruleid BAREUROPE codetype SUBJECT value BAREUROPE canbedisplaysubject true name Europe title Europe status modified code BAREUROPE subject BARUS subject|BARUS ruleid BARUS codetype SUBJECT value BARUS canbedisplaysubject true name US title US status modified code BARUS wordcount 399 wordcount|399 id facebook id|facebook news_tab_url https://www.barrons.com/articles/eurozone-pmis-have-never-been-worse-that-is-why-bank-of-america-is-bullish-on-eurozone-stocks-51585915005 Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Associated Press Eurozone PMIs Have Never Been Worse. That Is Why Bank of America Is Bullish on Eurozone Stocks. Eurozone PMIs Have Never Been Worse. That Is Why Bank of America Is Bullish on Eurozone Stocks. Eurozone PMIs Have Never Been Worse. That is Why Bank of America Is Bullish On Eurozone Stocks.

For PMIs not to rebound, the Bank of America analysts say, there would have to be new waves of lockdowns.

Eurozone PMIs Have Never Been Worse. That Is Why Bank of America Is Bullish on Eurozone Stocks.

For PMIs not to rebound, the Bank of America analysts say, there would have to be new waves of lockdowns.

https://asset.barrons.com/dynamic-insets/charts/cdc_92a69ed8e12fb93dd3a27d80.json Eurozone PMIs Have Never Been Worse. That Is Why Bank of America Is Bullish on Eurozone Stocks. By Steve Goldstein Associated Press Medical staff of a mobile unit take samples from people in cars to test for Covid-19 at a drive-through position at the Santa Maria della Pietà hospital complex, in Rome, Italy, on Apr. 3, 2020.

On Friday, IHS Markit released data showing purchasing managers indexes across Europe plunged to new lows.

The final eurozone composite purchasing managers index for March skidded to a reading of 29.7 from 51.6 in February — on a scale where any number below 50 indicates contracting conditions. That is worse than the readings even during the global financial crisis.

https://asset.barrons.com/dynamic-insets/charts/cdc_92a69ed8e12fb93dd3a27d80.json

Equity strategists at Bank of America say it is unlikely the numbers will ever get worse, just based on how the survey is conducted. The survey measures manager assessments of whether each month’s conditions are better or worse relative to the previous period.

For PMIs not to rebound, the Bank of America analysts say, there would have to be new waves of lockdowns.

They say that is unlikely and point out that, in hardest-hit Italy, the growth rate of new daily cases has slowed from 40% to 4%. Even in the U.S., where cases are growing rapidly, the growth rate has slowed down to a pace that suggests it is two weeks behind Italy.

The Bank of America team say even a slow recovery — where PMIs don’t exceed 50 until August — would be consistent with “meaningfully positive PMI momentum.”

That implies 25% upside for the Stoxx Europe 600, to 400, by August, they say.

On Friday afternoon, the Stoxx 600 was trading 0.7% weaker to 309.77.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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