Germany's manufacturing and service sectors deteriorate in April

Germany’s April PMI readings weakened across the board, signaling a slowdown that could weigh on German equities. Manufacturing PMI fell to 51.20 (from 52.20), missing estimates of 51.3 but remaining slightly expansionary. Services PMI dropped sharply to 46.90 (from 50.90), below the 50.3 estimate and back in contraction. The composite PMI plunged to 48.30 (from 51.90), below the 51.1 consensus, indicating overall economic activity contracting. These downside surprises increase near-term downside risk for the Germany 40 index as service-sector weakness and a sub-50 composite can dent growth expectations and investor sentiment for German stocks.