Market Confidence Dived Due to Economic Uncertainty in Eurozone; MCI Plunged by 517 Points
According to the latest research statistics by WitsView, MCI dropped from 4433.4 to 3916.4 by 517 points during the period of 4/13~5/14. Based on 4/23 announcement, European PMI fell to 46.7, marking three quarters of continuous downtrend, indicating eurozone is entering its second recession. In spite of austerity program in Eurozone countries, the market’s attitude toward eurozone economics remains pessimistic due to swaying policies. In addition, an unsure new Greek government after the election repeatedly raises the concerns over European debt crisis, resulting in a plunge in both oil and gold prices, showing a significant weak market confidence. Meanwhile, the IMF projected a negative GDP growth of 0.3% in EU. According to the release on 4/24, the US durable goods orders fell to its lowest point since 2009 in Mar-12 with a MoM decline of 4.2%, indicating that the US economy is prone to weakness. On 5/4, China PMI soared to a 13-month high of 53.3 while achieving its five months of continuous uptrend, suggesting China’s economy is relatively stable and promising compared to the US and European economy.
The market is entering traditional off-season after China May 1st Labor Day. With the pressure on inventory due to half-year financial statement in June, downstream vendors’ concerns have been raised amid highly uncertain macroeconomic environment; therefore, the purchase demand for panel is expected to decrease. Inventory and capacity control is projected to be a crucial factor for panel price trends over the next months.
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